Norway's $1.3 Trillion Sovereign Wealth Fund Indirectly Owns 2,446 Bitcoin (BTC)

As Bitcoin adoption continues to gain momentum globally among countries and traditional financial (TradFi) institutions, Norway's sovereign wealth fund

As Bitcoin (BTC) adoption continues to gain momentum globally among countries and traditional financial (TradFi) institutions, a recent analysis has revealed that Norway’s sovereign wealth fund is a stealth holder of a large amount of the flagship cryptocurrency.

According to a recent analysis by K33 Research analyst Vetle Lunde, Norges Bank Investment Management (NBIM), which manages the Norwegian Government Pension Fund Global, now indirectly owns 2,446 Bitcoin (BTC), showing a significant increase of 938 BTC from the end of 2023.

Lunde explained that the growth in NBIM’s indirect BTC holdings is likely due to pre-determined algo-based sector weighting and risk diversification.

"It’s unlikely to stem from an intentional choice to amass exposure—if increased BTC exposure was the target, we’d see more evidence of direct exposure initiatives (and significantly larger exposure)."

However, despite the passive nature of NBIM’s Bitcoin accumulation, the fund’s growing indirect exposure to the cryptocurrency underscores Bitcoin's continued maturation as an asset class, according to Lunde.

Moreover, thanks to corporate BTC treasury strategies advanced by Michael Saylor, CEO and founder of Microstrategy, Jack Dorsey, and others, the Norwegian indirect sat per capita exposure stood at 44,476 sats ($27) by the end of the first half of 2024.

Lunde’s analysis also traces NBIM’s crypto ties, highlighting the following key points:

NBIM’s indirect BTC exposure may not be the result of a deliberate strategy to accumulate the cryptocurrency, as suggested by the analyst.

However, the fund’s growing exposure to BTC is a clear indication of the increasing adoption of BTC for diversification and growth among countries and funds.

As more traditional financial institutions and sovereign wealth funds follow suit, the future integration of Bitcoin into the global financial system appears to be on a steady trajectory.

At the time of writing, the largest cryptocurrency is trading at $59,490, again losing the $60,000 mark after repeated failed attempts to consolidate above this key level for BTC’s prospects.

Featured image from DALL-E, chart from TradingView.com

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