Government entities from various countries are increasing their exposure to Bitcoin through indirect investment routes, according to a research report from Standard Chartered published on Tuesday. The bank points to the growing institutional stakes in MicroStrategy (MSTR), a company widely regarded as a proxy for exposure to Bitcoin, as evidence of the accelerating structural demand for the asset.

Governments seek exposure to Bitcoin through MSTR amid regulatory restrictions

According to Geoff Kendrick, head of digital asset research at Standard Chartered, several government bodies and pension funds increased their MSTR holdings during the first quarter of 2025, reflecting efforts to gain exposure to BTC in jurisdictions where direct holdings are restricted.

"The holdings of MSTR by government entities reflect a desire to gain exposure to bitcoin where local regulators do not allow direct holdings of BTC," Kendrick wrote.

MicroStrategy, which pioneered the corporate treasury model of Bitcoin, now holds 576,230 BTC, valued at approximately $59 billion according to the current market price of $104,799.

International pension and central bank activity increases

Standard Chartered highlighted a series of significant MSTR allocations during the first quarter:

The Government Pension Fund of Norway and the Swiss National Bank (SNB) increased their MSTR holdings, equivalent to approximately 700 BTC.

The National Pension Service of South Korea and the Korea Investment Corporation added a combined total of 700 BTC equivalent.

U.S. state pension funds, including those from California, New York, and North Carolina, increased their holdings by the equivalent of 1,000 BTC.

Swedish AP funds and Landesbank Liechtenstein reported marginal increases.

France's Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank entered MSTR positions for the first time.

ETF holdings lag despite institutional demand for Bitcoin

While institutional exposure through MSTR increased, direct holdings in Bitcoin exchange-traded funds (ETFs) were "disappointing" in the first quarter, according to the bank. However, Standard Chartered maintains its long-term bullish outlook, reinforcing its prediction that Bitcoin will reach $500,000 before President Trump leaves office.

The bank believes that as institutional appetite grows, especially from traditionally conservative investors like government pension funds, the floor of demand for Bitcoin will continue to rise, contributing to long-term price appreciation.$BTC