Press the sauté function on the Instant Pot and add the olive oil. Once hot, add the onion and cook for 3 minutes until it softens.
Stir in the garlic and ginger. Cook for 1 minute until fragrant.
Add the butternut squash, vegetable broth, salt, and black pepper. Stir to combine.
Secure the lid, set the valve to sealing, and cook on manual high pressure for 10 minutes. Allow a natural pressure release for 10 minutes, then quick release any remaining pressure.
Open the lid and stir in the coconut milk. Use an immersion blender to puree the soup until smooth.
Ladle into bowls and top with chopped parsley before serving.