What You Need to Know:

• Government entities have increased their holdings of MSTR, a bitcoin proxy, during the first quarter, as reported by Standard Chartered.
• The bank asserts that these MSTR holdings indicate a desire for bitcoin exposure in regions where direct BTC ownership is restricted by local regulations.
• The latest 13F data supports the bank’s prediction that bitcoin could escalate to $500,000 prior to the end of President Trump’s term.

Government bodies have ramped up their MSTR holdings, a proxy for bitcoin, as illustrated in new data released by the U.S. Securities and Exchange Commission (SEC) and noted by investment banking firm Standard Chartered. Geoff Kendrick, the head of digital assets research at Standard Chartered, commented that these holdings reflect a necessity for gaining bitcoin exposure where local regulations inhibit direct BTC ownership.

MSTR has pioneered the bitcoin treasury model, with current holdings amounting to 576,230 BTC valued at around $59 billion based on market prices. According to the report, both Norway’s Government Pension Fund and the Swiss National Bank increased their holdings by the equivalent of 700 BTC in the first quarter. Additionally, the South Korean National Pension Service and the Korea Investment Corporation both expanded their holdings by 700 BTC. Various U.S. state retirement funds have also increased their MSTR positions by a collective 1,000 BTC.

Standard Chartered noted that certain entities, including France’s Caisse des Dépôts et Consignations and the Saudi Central Bank, acquired modest positions in MSTR for the first time. Despite the disappointment in first-quarter Bitcoin ETF data, the bank believes the recent moves signify a broader institutional acceptance of the cryptocurrency.