Sovereign wealth funds and state institutions are increasingly looking to gain exposure to Bitcoin through alternative investment vehicles such as MicroStrategy (MSTR) rather than traditional spot BTC exchange-traded funds (ETFs). This shift in strategy is highlighted in a recent investor report by Standard Chartered’s head of digital assets research, Geoffrey Kendrick.
According to Kendrick, regulatory filings indicate that the majority of sovereign Bitcoin accumulation in the past quarter has been driven by increased holdings in MSTR, while direct ETF activity has remained relatively flat. This trend suggests that nations are exploring different avenues to build exposure to Bitcoin.
One key observation made by Kendrick is the rise in indirect exposure to Bitcoin through investments in MSTR. While headlines focused on Wisconsin’s exit from a BTC-equivalent ETF, the real momentum came from governments and public institutions buying equity in MicroStrategy, which currently holds a significant amount of Bitcoin.
Regulatory filings reveal that countries like Norway, Switzerland, and South Korea were among the most active buyers of MSTR during the first quarter, collectively adding over 1,600 BTC equivalent of exposure via MSTR shares. In the US, state pension funds in California, New York, and North Carolina also added another 1,000 BTC equivalent via MSTR, showcasing a growing interest in indirect exposure to Bitcoin.
Meanwhile, Abu Dhabi increased its direct ETF exposure, while Saudi Arabia’s central bank made its first-ever appearance with a small allocation. Kendrick notes that institutional investors are increasingly using MSTR as a structural bridge into Bitcoin markets, especially for those constrained by operational or regulatory barriers to holding digital assets directly.
Despite overall sovereign ETF positions remaining unchanged, Standard Chartered views the net increase in MSTR exposure as a positive signal for Bitcoin. The bank maintains its long-standing view that Bitcoin could reach $150,000 by the end of this year and $500,000 by the end of President Donald Trump’s current term in 2028, under broader institutional integration.
The report also highlights that combined ETF and MSTR positions have surpassed 100,000 BTC in quarterly holdings, indicating Bitcoin’s growing presence in traditional portfolios. As geopolitical uncertainty and inflation persist, sovereign entities are cautiously exploring Bitcoin as a store of value.
In conclusion, Kendrick suggests that the increasing detail and diversity of 13F Bitcoin-related filings indicate deeper market penetration and data granularity in future disclosures. This trend towards indirect exposure through vehicles like MSTR showcases a growing interest in Bitcoin among sovereign wealth funds and state institutions, paving the way for broader institutional adoption.