Recent financial reports from Standard Chartered highlight a growing trend where government pension funds and sovereign wealth entities are boosting their Bitcoin exposure indirectly by purchasing shares in MicroStrategy (MSTR), a company known for its substantial corporate Bitcoin holdings. This indirect buying method circumvents regulatory and policy hurdles that restrict direct cryptocurrency ownership by these institutions.Notable purchasers include Norway's Government Pension Fund and the Swiss National Bank, among others, who enhanced their stakes in MicroStrategy during the first quarter of 2025. Utilizing MicroStrategy shares allows these traditionally risk-averse bodies to gain potential upside from Bitcoin price movements without directly holding the volatile digital asset.
Standard Chartered analysts maintain a bullish outlook on Bitcoin's price, forecasting it to reach $500,000 potentially before the end of U.S. President Donald Trump’s current term if he is re-elected. Additionally, details from regulatory filings reveal that sovereign entities from Norway, Switzerland, South Korea, and some U.S. state pension funds have collectively accumulated Bitcoin exposure worth thousands of BTC equivalents mainly through MicroStrategy shares.
Despite flat or reduced activity in direct Bitcoin ETFs, the surge in MicroStrategy equity investments demonstrates a strategic shift in institutional behavior toward indirect Bitcoin adoption. This approach simplifies operational challenges, complies with regulatory frameworks, and provides a viable avenue for institutional portfolios to include Bitcoin exposure.
While this indirect exposure involves some correlation risk as MicroStrategy stock price is influenced by factors beyond Bitcoin’s market price, the trend indicates the increasing acceptance and integration of cryptocurrencies into traditional finance. The overall development signals accelerating mainstream adoption and potential for continued market growth underpinned by institutional demand.