Norway's Sovereign Wealth Fund Expands Indirect Bitcoin Holdings, Marking a Pivotal Moment in Cryptocurrency Adoption

This Bitcoin news highlights a growing trend of institutional interest in digital assets, with governments worldwide holding substantial Bitcoin reserves.

Norway’s sovereign wealth fund has increased its indirect exposure to Bitcoin (CRYPTO: BTC) through strategic investments in crypto-related tech firms, amassing holdings valued at $143 million. This development marks a significant moment in cryptocurrency adoption, as government institutions continue to expand their involvement in digital assets.

The Norwegian fund, managed by Norges Bank Investment Management (NBIM), now holds the equivalent of 2,446 BTC through this indirect approach. The fund’s holdings in BTC-related assets have grown substantially, with an addition of 938 BTC since the end of 2023.

The fund’s strategy involved reducing its stakes in tech giants like Meta (NASDAQ:META) and pivoting toward promising Web3 stocks. This shift in investment preference saw the fund increase its holdings in MicroStrategy (NASDAQ:MSTR), Coinbase (NASDAQ:COIN), Block (NYSE:SQ), and Marathon Digital (NASDAQ:MARA).

This news from Norway is part of a broader trend of government involvement in cryptocurrencies. According to a report by Coingecko, global governments now collectively own about 2.2% of the total Bitcoin supply, which amounts to approximately 471,000 BTC.

The United States leads the way in this regard, with holdings of over 212,000 BTC. This substantial governmental stake in Bitcoin not only legitimizes the cryptocurrency but also signals a potential shift in how nations view digital assets as part of their investment strategies.

In other Bitcoin adoption metrics, the number of non-zero Bitcoin addresses has seen a slight uptick, rising from about 53 million to 54 million recently. This increase, coupled with the resilience of the price despite some market fluctuations, indicates that more individuals and entities are entering the Bitcoin ecosystem.

However, daily active addresses have seen a minor decrease recently. Despite this dip, the number of daily active Bitcoin addresses continues to surpass the crucial 500,000 threshold, clocking in at over 592,000 at the time of writing.

Meanwhile, Bitcoin’s price remains below the psychologically important $60,000 mark despite the positive institutional adoption and user engagement.

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