A recent report from Standard Chartered Bank indicates that government entities are increasingly seeking indirect exposure to Bitcoin (BTC), particularly through investments in MicroStrategy (MSTR). This trend highlights the bank’s bullish prediction that BTC could reach $500,000 before President Donald Trump’s term ends in 2029.
Institutional Interest In Bitcoin Grows
Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, articulated this view, stating, “The latest 13F data from the US Securities and Exchange Commission (SEC) supports our core thesis that Bitcoin will reach the $500,000 level before Trump leaves office as it attracts a wider range of institutional buyers.”
Kendrick believes that as more investors enter the market and as Bitcoin’s volatility decreases, portfolios will adjust to optimize their allocations in Bitcoin. The recent Q1 13F filings revealed a notable decline in direct Bitcoin ETF purchases.
For example, Wisconsin’s state fund completely exited its 3,400 BTC-equivalent position in the IBIT fund. In contrast, government-related investments in MicroStrategy shares have surged.
Notably, Abu Dhabi’s Mubadala increased its exposure to the equivalent of 5,000 BTC, illustrating a growing trend among sovereign investors to gain Bitcoin exposure in jurisdictions where direct holdings are restricted.
Kendrick pointed out that the shift towards MSTR holdings among government entities reflects a strategic effort to navigate local regulations that may prohibit direct Bitcoin investments. For instance, France and Saudi Arabia established first-time positions in MicroStrategy during Q1.
Additionally, Norway’s Government Pension Fund, the Swiss National Bank, and public funds from South Korea each added exposure equivalent to 700 BTC. In the US, retirement funds in California and New York collectively increased their MSTR holdings by 1,000 BTC equivalent.
Is BTC On The Brink Of A Major Price Revolution?
Kendrick described this trend as “very encouraging,” stating, “The quarterly 13F data is the best test of our thesis that BTC will attract new institutional buyer types as the market matures, helping the price reach our USD 500,000 level.”
He noted that historically, when institutions buy Bitcoin, prices tend to rise, reinforcing the correlation between institutional investment and market appreciation.
This isn’t the first time Kendrick has made bold predictions about Bitcoin’s price trajectory. Last month, he acknowledged that his previous forecast of $120,000 for Q2 2025 was “too low,” citing an influx of $5.3 billion into US spot Bitcoin ETFs over a mere three weeks. As a result, he revised his year-end target for 2025 to $200,000.
Standard Chartered’s latest analysis suggests that Bitcoin’s role in institutional portfolios is evolving beyond its historical correlation with technology volatility.
It is increasingly being viewed as a macro hedge against broader economic uncertainties. “It is now all about flows,” Kendrick emphasized, noting that investment flows into Bitcoin are coming in various forms.
Featured image from DALL-E, chart from TradingView.com