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Bitcoin Could Reach $500,000 as Institutions Boost MSTR Holdings

Coin WorldTuesday, May 20, 2025 10:34 am ET

1min read

Standard Chartered has projected that Bitcoin could reach $500,000, driven by increasing institutional exposure through MicroStrategy’s MSTR stock. This prediction is based on the growing trend of sovereign and quasi-sovereign entities, including Norway, South Korea, and Saudi Arabia, ramping up their MSTR holdings as Bitcoin proxies. These entities are increasingly viewing MSTR as a vehicle for indirect exposure to Bitcoin, which could fuel the cryptocurrency’s long-term growth.

According to Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, the deepening institutional adoption, particularly through indirect exposure via MicroStrategy’s MSTR shares, is a key factor in this bullish outlook. Kendrick emphasized that as more investors gain access to the asset and as volatility falls, portfolios will migrate towards their optimal level from an underweight starting position in Bitcoin. This trend is supported by the recent Q1 2025 13F filings from the US SEC, which show increasing allocations to MSTR by a range of global sovereign and quasi-sovereign entities.

Norway, Switzerland, and South Korea reported significant increases in their MSTR holdings, while Saudi Arabia added a small position for the first time. These entities are using MSTR as a Bitcoin proxy, which Kendrick described as a “Bitcoin proxy.” The trend of MSTR accumulation is seen as a more exciting development compared to the relatively unexciting Bitcoin ETF flows. The data from the SEC filings support the thesis that Bitcoin is attracting a wider range of buyers, with MSTR seeing increased buying despite a slight decline in direct holdings of Bitcoin ETFs.

The growing institutional interest and indirect Bitcoin exposure through MSTR could be a significant driver of Bitcoin’s potential surge to $500,000. This trend is supported by macroeconomic factors and investor sentiment, which are increasingly viewing Bitcoin as a hedge against instability. The data from the SEC filings and the analysis by Standard Chartered reinforce the outlook that institutional and sovereign flows—both direct and indirect—will be a key driver of Bitcoin’s ascent in the coming years.

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