Key Highlights:
- Norway’s Sovereign Wealth Fund increased its indirect Bitcoin exposure.
- The fund currently holds 7,161 BTC through its stakes in various companies.
- This move signals increased confidence amongst institutional investors.
Norway’s Sovereign Wealth Fund (managed by Norges Bank Investment Management) is in the talks because in just a year, it has increased its indirect exposure by 192%. This indicates that even the most reputable institutions are showing interest in digital assets, as evidenced by this significant change in the portfolio.
Key Details:
NBIM’s Bitcoin bet just got a major upgrade. The fund now has indirect exposure to 7,161 BTCs which are worth $844 million as per today’s price, up from 3,821 BTCs at the close of 2024. This number indicates a year-over-year surge of 3,340 BTCs without ever buying a single coin directly.
Instead, NBIM plays a smarter game, it gains its crypto exposure through well-known public companies that already hold huge Bitcoin reserves, leading the charge are Strategy (formerly known as MicroStrategy), Marathon Digital, Coinbase, Block (formerly known as Square), and Japan’s Metaplanet. It is a diversified institutional-grade approach that lets the fund ride the BTC wave while staying firmly in traditional investment waters.
The biggest boost came from Strategy which alone added 3,005.5 BTCs to NBIM’s indirect holdings over the year. Marathon Digital chipped in another 216.4 BTCs, while Block brought 85.1 BTCs to the table. Coinbase and Metaplanet came out to be the top five contributors with 57.2 and 50.8 BTCs respectively. Even smaller players such as GameStop, Tesla, Mercado Libre, and a handful of others, added modest but significant amounts to the total.
This is a textbook example of how strategic stacking works, here you leverage multiple industry leaders to quietly but significantly expand Bitcoin exposure without ever touching the asset directly.
Why Indirect Exposure?
Norway’s Sovereign Wealth Fund, just like most of the state-backed fund, can only invest in certain asset types. These include stocks, corporate bonds, and fixed-income securities. Buying Bitcoin or other cryptocurrencies directly is not allowed as per the current rules. Instead, the fund gains exposure to the crypto market by investing in companies that are heavily involved in the Bitcoin ecosystem. In this way, NBIM benefits from the growth of the digital assets while still staying within traditional investment guideline.
Institutional Confidence in Cryptocurrency
The action taken by Norway in indicative of a broader trend among government-run funds and significant institutional investors. These big players are now more willing to include cryptocurrency exposure in their portfolios, primarily Bitcoin. The strategy of the Norwegian fund indicates the growing confidence in digital assets as a means of diversifying traditional investment.
If you look around the globe, many of the government-backed funds are taking the same steps. The State of Wisconsin’s pension board, for example, has invested in Bitcoin ETFs (exchange-traded funds) and other investment tools. Kazakhstan’s sovereign wealth fund has also revealed plans to shift part of its assets into crypto, showing the global move toward accepting digital assets in state-managed reserves.
Financial Performance and Portfolio Size
Norway’s Government Pension Fund Global run by NBIM, scored a record $222.4 billion profit in 2024, driven largely by booming tech and AI stocks. Now, its jump in Bitcoin exposure comes right as crypto markets heat up, fueled by the 2024 U.S. presidential election results and a wave of big institutional players diving deeper into the space.
Ripple Effect
Being the first cryptocurrency and largest cryptocurrency, Bitcoin is easily creeping its way into the portfolio of institutional investors. This could be indirectly or directly. With the holdings that NBIM currently has, it is clear that digital assets are becoming essential part of institutional portfolios.
Also Read: Ethereum Nears Record High as Crypto Market Soars Past $4 Trillion
