Standard Chartered Highlights Surge in BTC Demand Driven by Government-Backed Funds Increasing MSTR Holdings

Government Entities Expand Strategy (MSTR) Holdings to Access Bitcoin Amid Regulatory Constraints, According to Standard Chartered

Government-backed investors are increasingly turning to Strategy (MSTR) shares to gain bitcoin exposure in markets where direct ownership is limited by regulatory barriers, a recent report from Standard Chartered (STAN) reveals.

Newly released data from the U.S. Securities and Exchange Commission (SEC) indicates that government bodies significantly increased their MSTR positions during the first quarter of 2025. Geoff Kendrick, head of digital assets research at Standard Chartered, noted that “MSTR holdings by government entities often serve as an alternative method to secure bitcoin exposure when direct BTC holdings are prohibited by local regulations.”

Strategy, recognized for pioneering the corporate bitcoin treasury model, currently holds approximately 576,230 BTC, valued near $59 billion at current market prices.

The report highlights that Norway’s Government Pension Fund and the Swiss National Bank (SNB) each raised their Strategy holdings by roughly 700 BTC equivalents in Q1. Similarly, South Korea’s National Pension Service and the Korea Investment Corporation collectively added about 700 BTC worth of shares.

U.S. state pension funds from California, New York, and North Carolina increased their combined MSTR holdings by the equivalent of 1,000 BTC. Sweden’s AP Funds and Liechtenstein’s Landesbank made smaller increases.

Notably, France’s Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank took initial positions in Strategy during this period.

Despite these inflows, direct bitcoin ETF holdings showed disappointing growth overall in the first quarter.

Nonetheless, Standard Chartered remains bullish on bitcoin’s outlook. Recent 13F filings support the bank’s thesis that bitcoin could reach $500,000 before former President Trump leaves office, driven by expanding institutional participation.