Sovereign wealth funds and state institutions are increasingly opting to gain Bitcoin (BTC) exposure through Strategy (MSTR) rather than spot BTC exchange-traded funds (ETFs), according to Standard Chartered’s head of digital assets research, Geoffrey Kendrick.
In an investor report published May 20, Kendrick said that regulatory filings show that increased MSTR holdings drove the bulk of sovereign Bitcoin accumulation over the past quarter, even as direct ETF activity remained flat overall.
The filings confirm speculation that sovereign interest in Bitcoin is growing every quarter, with nations starting to build exposure in various ways.
Indirect exposure on the rise
Kendrick noted that while headlines focused on Wisconsin’s 3,400 BTC-equivalent ETF exit, the real momentum came from governments and public institutions buying equity in Strategy, which now holds 576,230 BTC.
Regulatory filings reveal that 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. This contrasts with Wisconsin, which divested its ETF exposure.
Meanwhile, Abu Dhabi increased its direct ETF exposure by 300 BTC equivalent, bringing its total to 5,000 BTC, and Saudi Arabia’s central bank made its first-ever appearance with a small allocation.
Kendrick said that the 13F filings show that institutional investors are increasingly using MSTR as a structural bridge into Bitcoin markets.
He added that Strategy’s appeal lies in its unique positioning as a leveraged proxy to Bitcoin, especially for allocators constrained by operational or regulatory barriers to holding digital assets directly.
Broader implications
Despite overall sovereign ETF positions remaining unchanged, offset by Wisconsin’s exit, Standard Chartered views the net increase in MSTR exposure as a bullish signal.
The moves align with the bank’s long-standing view that Bitcoin could reach $150,000 under broader institutional integration by the end of this year and $500,000 by the end of President Donald Trump’s current term in 2028.
Standard Chartered said in its report:
“The latest 13F data… supports our core thesis that Bitcoin (BTC) will reach the $500,000 level before Trump leaves office as it attracts a wider range of institutional buyers.”
The report also noted that ETF and MSTR positions have now surpassed 100,000 BTC in combined quarterly holdings, reinforcing Bitcoin’s growing presence in traditional portfolios.
As geopolitical uncertainty and inflation persist, sovereign entities appear to be experimenting with Bitcoin as a store of value, albeit cautiously and often indirectly.
Kendrick concluded the note by suggesting that the detail and diversity of 13F Bitcoin-related filings are “continuing to improve,” indicating deeper market penetration and data granularity in future disclosures.
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