London — May 21, 2025—Sovereign wealth funds and state institutions are increasingly gaining exposure to Bitcoin (BTC) through shares of MicroStrategy (MSTR) rather than direct investments in spot Bitcoin exchange-traded funds (ETFs), according to Geoffrey Kendrick, head of digital assets research at Standard Chartered.
In a report published May 20, Kendrick analyzed regulatory filings showing that growth in MSTR holdings drove the majority of sovereign Bitcoin accumulation in the past quarter, even as overall activity in Bitcoin ETFs remained stagnant. The findings confirm rising quarterly interest in Bitcoin among nations, which are increasingly building exposure through indirect channels.
Indirect Exposure Gains Traction
Kendrick highlighted that while headlines focused on Wisconsin’s divestment of 3,400 BTC-equivalent ETF holdings, the primary momentum came from governments and public institutions purchasing equity in MicroStrategy, which currently holds 576,230 BTC.
Key developments include
European and Asian Activity: Norway, Switzerland, and South Korea were among the most active buyers of MSTR shares in Q1, collectively adding over 1,600 BTC equivalent of exposure through the company’s stock.
U.S. State Pension Moves: California, New York, and North Carolina’s state pension funds added another 1,000 BTC equivalent via MSTR, contrasting with Wisconsin’s ETF exit.
Direct ETF Adjustments: Abu Dhabi increased its direct ETF exposure by 300 BTC equivalent (total: 5,000 BTC), while Saudi Arabia’s central bank made its first reported Bitcoin allocation through an ETF.
Kendrick noted that 13F filings—disclosures of institutional holdings—reveal a growing trend of using MSTR as a “structural bridge” to Bitcoin markets. MicroStrategy’s appeal stems from its role as a leveraged proxy for BTC, particularly for investors constrained by operational or regulatory barriers to holding digital assets directly.
Broader Institutional Integration Signals Bullish Outlook
Despite Wisconsin’s ETF exit offsetting other direct investments, Standard Chartered views the net increase in MSTR exposure as a bullish sign. The bank has long projected Bitcoin could reach $150,000 by year-end amid broader institutional integration and $500,000 by 2028, during President Donald Trump’s current term.
“The latest 13F data supports our core thesis that Bitcoin will hit $500,000 before Trump leaves office as it attracts a wider range of institutional buyers,” the report stated. It also highlighted that combined ETF and MSTR holdings now exceed 100,000 BTC in quarterly disclosures, underscoring Bitcoin’s growing role in traditional investment portfolios.
As geopolitical uncertainty and inflation persist, sovereign entities are cautiously exploring Bitcoin as a store of value, often through indirect means. Kendrick concluded that the “improving detail and diversity” of 13F filings signal deeper market penetration and more granular data disclosures ahead.
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