South Korea's National Pension Scheme Makes Bold Moves

According to the latest 13F filing submitted to the U.S. Securities and Exchange Commission, South Korea's National Pension Scheme (NPS) purchased 245,000 MicroStrategy (MSTR) stocks during the second quarter.

The MSTR stock price is up 92% year to date, but most of the gains came in the first quarter of this year. This move underscores the growing interest in Bitcoin and the companies heavily invested in it.

The total value of NPS's investment in acquiring MicroStrategy (MSTR) stocks is 46 billion won, or $33.7 million. This accounts for 0.04% of NPS's direct investment portfolio in U.S. stocks.

This is not the first time South Korean NPS has sought exposure to public-listed crypto stocks in the U.S. During the third quarter of 2023, the NPS acquired a massive 282,673 shares of Coinbase (COIN) stock while beginning its direct investment in the crypto industry.

By then, the COIN share price was trading at $78, which had surged by threefold to $222 by the end of the second quarter.

MicroStrategy's Influence and a New ETF

MicroStrategy is the largest single corporate holder of Bitcoins and currently holds more than 1% of the total Bitcoin supply in the market.

In another development, the U.S. SEC approved a leveraged MicroStrategy ETF MSTX issued by Defiance, which will deliver 175% of MicroStrategy's daily stock return. This business intelligence firm is turning out to be a proxy play for investors who want to bet on the Bitcoin price.

MSTX provides a unique opportunity for investors willing to maximize their leverage exposure to the Bitcoin market through a regulated ETF instrument.

Launching the spot Bitcoin ETFs in the market has provided a regulated way of gaining exposure to the most prominent crypto asset class. As a result, several U.S. states gained exposure to this Bitcoin instrument during the second quarter of this year.

U.S. State Investment Boards Follow Suit

A day before, the State of Wisconsin Investment Board (SWIB) announced significant exposure to the BlackRock Bitcoin ETF IBIT. Since the ETF launch, SWIB has purchased Bitcoin ETFs for two consecutive quarters. This move by SWIB indicates growing institutional acceptance and confidence in Bitcoin as an asset class.

Last month, the State of Michigan Retirement System disclosed a $6.6 million investment in ARK 21Shares Bitcoin ETF (ARKB).

This trend of state investment boards increasing their Bitcoin exposure indicates a broader shift towards accepting and integrating cryptocurrency within traditional financial portfolios.

Similarly, Jersey City Mayor Steven Fulop has shared the intention to make bitcoin investments via ETFs.

The growing trend of U.S. state investment boards and international entities like the NPS increasing their exposure to Bitcoin is a significant indicator of the cryptocurrency's growing legitimacy and acceptance within institutional investment circles.