- Because the fund invests in cryptocurrency companies, every Norwegian is essentially exposed to $27 worth of Bitcoin.
As of the first half of 2024, the typical Norwegian indirectly “owns” $27 worth of Bitcoin thanks to investments made by the nation’s sovereign wealth fund.
Through investments in tech companies that are exposed to cryptocurrencies, the Norwegian sovereign wealth fund (NBIM) currently has indirect exposure to 2,446 BTC, according to K33Research. Since December 31, 2023, its “holdings,” which are now valued little over $143 million, have climbed by 938 BTC.
The nation’s substantial oil earnings are invested on behalf of the 5.5 million people who live in Norway through the $1.7 trillion Norges Bank Investment Management fund.
Senior analyst at K33Research Vetle Lunde stated that it is doubtful that the nation’s exposure to Bitcoin through its flagship wealth fund is the result of a deliberate decision.
According to Lunde, there would be more evidence of direct exposure activities and a far larger exposure if the nation planned to enhance its exposure to Bitcoin.
Rather, the affluent nation in Northern Europe is becoming more familiar with Bitcoin thanks to growing stakes in businesses like Marathon Digital, Block, and MicroStrategy, which have substantial holdings of the cryptocurrency in their corporate coffers.
Michael Saylor, the chair of the software company MicroStrategy, is now leading one of the biggest individual Bitcoin holders in the world.
In the first half of 2024, Norway grew its holdings of MicroStrategy shares from 0.67% to 0.89%, while MicroStrategy expanded its exposure to Bitcoin by 37,181 during the same period.
The wealth fund also made significant investments in Block, Inc. (from 1.09% to 1.28%), Coinbase (from 0.49% to 0.83%), and mining company Marathon Digital (from 0% to 0.82%).
According to Lunde, the figures show how Bitcoin is developing as an asset.
One of the fund’s declared objectives is to actively endeavor to reduce risk through diversification.
Which countries are the biggest Bitcoin holders?
Large reserves of Bitcoin are held by numerous nations, however these are frequently the result of unintentional investments.
According to BitcoinTreasuries, the US government owns little more than $12.5 billion worth of bitcoin, or 1% of the total value.
This results from selling the bitcoin that has been seized when authorities clamp down on illegal activities, as opposed to purchasing it as an investment.
Donald Trump, a Republican running for president, has supported utilizing its holdings as the cornerstone of a strategic reserve for Bitcoin.
Similar to other countries, the UK, which currently possesses $3.5 billion in Bitcoin, does not sell the cryptocurrency it seizes.
El Salvador, on the other hand, has made it a policy to consciously accumulate Bitcoin reserves. The nation in Central America, where Bitcoin is accepted as payment, currently has 5,800 Bitcoin in reserve, valued at over $339 million, or nearly $54 per person.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
