Sovereign Funds Enter Indirectly: Gaining Bitcoin Exposure Through MSTR
Standard Chartered Bank's latest report confirms that sovereign investor interest in Bitcoin is accelerating, albeit through a more indirect route. Geoffrey Kendrick, the bank's global head of digital assets research, points to SEC 13F data showing government entities quietly increasing Bitcoin exposure by purchasing shares of Strategy (formerly MicroStrategy, MSTR). This reinforces Standard Chartered's long-standing prediction that Bitcoin will reach $500,000 before President Donald Trump leaves office in 2029.
Kendrick stated: "The latest 13F data supports our core thesis that as Bitcoin attracts a wider range of institutional buyers, the price will reach the $500,000 level before Trump leaves office. As more investors gain access to the asset and volatility falls, we believe portfolios will migrate towards their optimal level from an underweight starting position in BTC."
13F Data Reveals Fund Flows: ETF Buying Slows, MSTR Takes Over
Q1 13F filings show a slowdown in direct Bitcoin ETF purchases—Wisconsin's state fund exited its entire 3,400 BTC-equivalent IBIT position—while government-linked MSTR share purchases increased. Abu Dhabi's Mubadala raised its IBIT exposure to 5,000 BTC equivalent, but Kendrick says the bigger story is elsewhere: "We believe that in some cases, MSTR holdings by government entities reflect a desire to gain Bitcoin exposure where local regulations do not allow direct BTC holdings."
- France and Saudi Arabia took first-time MSTR positions in Q1.
- Norway's Government Pension Fund, the Swiss National Bank, and South Korea's public funds each added exposure equivalent to 700 BTC via MSTR.
- U.S. retirement funds in states like California and New York added a combined 1,000 BTC equivalent via MSTR.
Kendrick called the trend "very encouraging" and emphasized that the quarterly 13F data is the best test of his thesis—as the market matures, Bitcoin will attract new institutional buyer types, helping the price reach $500,000. "When institutions buy Bitcoin, prices tend to rise."
From Lower Targets to $500K: Standard Chartered's Consistent Bullishness
This is not Kendrick's first bullish call. Last month, he admitted his prior $120K forecast for Q2 2025 was "too low," citing surging inflows into U.S. spot BTC ETFs totaling $5.3 billion over just three weeks. At the time, he revised his 2025 year-end target to $200,000. Standard Chartered's latest analysis shows Bitcoin's role in institutional portfolios is maturing beyond tech volatility correlation, now increasingly seen as a macro hedge. "It is now all about flows," Kendrick said. "And flows are coming in many forms."