Government entities increased their holdings of Strategy (MSTR), a bitcoin

In some cases "MSTR holdings by government entities reflect a desire to gain bitcoin exposure where local regulators do not allow direct BTC holdings," wrote Geoff Kendrick, head of digital assets research at Standard Chartered.

Government entities increased their holdings of Strategy (MSTR), a bitcoin software company, and several U.S. state retirement funds expanded their collective crypto exposure in the first quarter, new data showed.

The world’s largest sovereign wealth fund, Norway's Government Pension Fund, and the Swiss National Bank (SNB) both increased their Strategy holdings by the equivalent of 700 bitcoin, said Standard Chartered in a report on Thursday, citing SEC 13F filings.

The South Korean National Pension Service and the Korea Investment Corporation expanded their holdings by a combined 700 BTC equivalent, the report said.

U.S. state retirement funds, including California, New York and North Carolina, together added to their holdings the equivalent of 1,000 bitcoin, the bank said.

AP Funds in Sweden and Landesbank in Liechtenstein grew their MSTR holdings marginally, the bank noted.

France's Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank both added a small position in MSTR for the first time, Standard Chartered said.

Bitcoin exchange-traded fund (ETF) direct holding data was "disappointing" overall in the first quarter, the report added.

The bank said the most recent 13F data supports its central thesis that bitcoin will reach $500,000 before President Trump leaves office as the cryptocurrency attracts a wider range of institutional buyers.