Standard Chartered Reports Growing Sovereign Bitcoin Exposure Through MicroStrategy Holdings

This indirect exposure aligns with a broader trend of institutional adoption. Standard Chartered's head of digital assets, Geoffrey Kendrick, emphasized that this trend supports the bank's $500,000 Bitcoin BTC price target by 2029

Standard Chartered's report, based on Q1 2025 SEC 13F filings, highlights a significant shift in sovereign wealth funds and government entities' investment strategy. While direct Bitcoin ETF ownership saw a decrease, with Wisconsin unloading its 3,400 BTC-equivalent position in BlackRock's IBIT ETF, there was a notable increase in indirect exposure to Bitcoin through MicroStrategy (MSTR) shares.

This aligns with Standard Chartered's digital assets head, Geoffrey Kendrick's view that recent trends support the bank's BTC price target of $500,000 by 2029, and coincides with President Donald Trump's potential term.

According to the report, Norway's Government Pension Fund, the Swiss National Bank, and South Korea's pension bodies each added the equivalent of 700 BTC through MSTR shares, while U.S. state retirement funds in California, New York, North Carolina, and Kentucky collectively added 1,000 BTC equivalent. First-time buyers like Saudi Arabia and France also entered the space with smaller positions.

These funds were making new additions to their cryptocurrency holdings in the first quarter, en bloc.

This indirect exposure aligns with a broader trend of institutional adoption.

According to the report, several U.S. state retirement funds, including those in California, New York, North Carolina, and Kentucky, collectively added the equivalent of 1,000 BTC to MicroStrategy. First-time buyers Saudi Arabia and France entered the space with smaller positions.

This aligns with Standard Chartered's digital assets head, Geoffrey Kendrick's view that recent trends support the bank's $500,000 Bitcoin BTC price target by 2029.

However, the report also noted a decline in direct Bitcoin ETF ownership, with Wisconsin offloading its 3,400 BTC-equivalent position in BlackRock's IBIT ETF, indicating a strategic shift toward indirect exposure via MSTR.

According to the report, Norway's Government Pension Fund, the Swiss National Bank, and South Korea's pension bodies each added the equivalent of 700 BTC through MSTR shares, while U.S. state retirement funds in California, New York, North Carolina, and Kentucky collectively added 1,000 BTC equivalent. First-time buyers like Saudi Arabia and France also entered the space with smaller positions.

MicroStrategy itself holds 576,230 BTC valued at approximately $61,4 billion at Bitcoin's current price.

This indirect exposure aligns with a broader trend of institutional adoption. Standard Chartered's digital assets head, Geoffrey Kendrick, emphasized that this trend supports the bank's $500,000 Bitcoin BTC price target by 2029, coinciding with the end of President Donald Trump's term.

However, the report also noted a decline in direct Bitcoin ETF ownership, with Wisconsin offloading its 3,400 BTC-equivalent position in BlackRock's IBIT ETF, indicating a strategic shift toward indirect exposure via MSTR.

Institutional Momentum Accelerates Bitcoin's Global Ascent

The growing sovereign interest in Bitcoin via MicroStrategy underscores its increasing acceptance as a store of value among traditional financial entities. MicroStrategy's strategy of using debt to acquire Bitcoin—adding $42.6 billion to corporate treasuries since 2021, per River's May 2025 report—has made it a proxy for Bitcoin exposure, especially for entities cautious about direct crypto investments. This trend could drive Bitcoin's price higher, as increased demand from sovereign funds may reduce available supply.

However, challenges remain. The concentration of Bitcoin exposure in MicroStrategy raises concerns about centralization risks when MSTR's holdings expose major funds like BlackRock to Bitcoin volatility.

Despite this, the institutional momentum, coupled with Bitcoin's halving in 2024, which reduced issuance to 450 BTC per day (per Blockchain.com), supports a bullish outlook, potentially pushing Bitcoin toward $150,000 by the end of 2025 if institutional inflows continue.