Government entities across multiple countries are increasing their exposure to Bitcoin via indirect investment routes, according to a research report from Standard Chartered published on Tuesday. The bank points to growing institutional stakes in Strategy (MSTR)—a company widely considered a proxy for Bitcoin exposure—as evidence of accelerating structural demand for the asset.
Governments Seek Bitcoin Exposure via MSTR Amid Regulatory Constraints
According to Standard Chartered's Geoff Kendrick, Head of Digital Assets Research, several government bodies and pension funds increased their MSTR holdings during Q1 2025, reflecting efforts to gain BTC exposure in jurisdictions where direct holdings are restricted.
“MSTR holdings by government entities reflect a desire to gain bitcoin exposure where local regulators do not allow direct BTC holdings,” Kendrick wrote.
Strategy, which pioneered the corporate Bitcoin treasury model, now holds 576,230 BTC, valued at approximately $59 billion based on the current market price of $104,799.
International Pension and Central Bank Activity Rises
Standard Chartered noted a number of significant MSTR allocations during the first quarter:
Norway’s Government Pension Fund and the Swiss National Bank (SNB) increased their MSTR holdings, equivalent to roughly 700 BTC.
South Korea’s National Pension Service and Korea Investment Corporation added a combined 700 BTC equivalent.
U.S. state retirement funds, including those from California, New York, and North Carolina, increased their holdings by the equivalent of 1,000 BTC.
Sweden’s AP Funds and Landesbank Liechtenstein reported marginal increases.
France’s Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank both entered MSTR positions for the first time.
ETF Holdings Lag Despite Institutional Bitcoin Demand
While institutional exposure via MSTR rose, direct holdings in Bitcoin exchange-traded funds (ETFs) were "disappointing" in Q1, 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 demand floor for Bitcoin will continue rising, contributing to long-term price appreciation.
