Other factors that added to the NBIM’s indirect BTC exposure include the 0.82% increase in capital allocated to Marathon Digital. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong. Bitcoin hit a record high of $73,000 earlier this year, prior to the April halving event. So, history says its price will exceed that level sometime between April 2025 and October 2025. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
Its strategyreturned taxpayersthere a 55% profit whenBitcoin price surged this year. Despite the positive developments in institutional adoption and user engagement, Bitcoin’s price is below the psychologically important $60,000 mark. This growth in non-zero addresses is particularly significant Bitcoin news as it suggests a broadening base of Bitcoin holders. The fund reduced its stakes in Meta and other tech giants, instead funneling capital into promising Web3 stocks. Key beneficiaries of this shift include industry leaders such as MicroStrategy, Coinbase, Block, and Marathon Digital. Timely, reliable coverage of breaking news, insights, and analyses on Bitcoin and cryptocurrencies since 2018.
However, it is important to note that Norway’s sovereign wealth fund is not directly investing in Bitcoin or any other cryptocurrency, but they are investing in companies like MicroStrategy, Coinbase, Marathon Digital, and Block Inc. These companies have since increased their Bitcoin holdings, allowing for indirect exposure to these funds, and allowing them to grow accordingly. All of the funds included in this list are pure-play bitcoin portfolios, offering direct exposure to bitcoin through either spot prices or bitcoin futures.
Should this happen, cryptocurrencies could further be legitimized as standard asset classes and potentially see an increase in capital inflows. The increasing mainstream adoption of cryptocurrencies has contributed to reducing the perceived risks. This has made cryptocurrencies a more accessible investment vehicle for large institutional players like Norway’s sovereign wealth fund.
Finally, the growth in the fund’s bitcoin holdings raises questions about the future of the digital asset in institutional portfolios. While the current exposure represents a small fraction of the fund’s total assets, it could signal the beginning of a broader trend. Norway’s substantial investment in Bitcoin through its sovereign wealth fund illustrates a notable trend among global financial institutions towards embracing digital assets. As other countries explore similar avenues, Bitcoin’s role in the financial ecosystem seems poised for further growth and integration. These strategic investments not only boost national portfolios but also signal a broader shift towards digital finance, paving the way for future economic landscapes.
However, the approval of spot Ethereum ETFs still appears far off at this point. GBTC built its infrastructure well in advance of the recent SEC ruling as it bet big in anticipation of getting over this final regulatory hurdle. Although large and liquid, however, the elevated fee structure for this bitcoin ETF at present may give some investors cause to shop around. As of July 25, 2024, Saylor owned 1,961,668 shares of MicroStrategy class B stock and had sold all of his class A stock. Despite his 52.9% control of voting power thanks to class B voting preference, Saylor owns far less in equity — just 10% of the combined classes. In El Salvador, where Bitcoin is legal tender, President Nayib Bukele has bought up on-chain Bitcoin since 2021.
So-called “spot” bitcoin ETFs can hold the digital asset without equivocation or complications. By owning shares of MicroStrategy, Norway’s central bank is gaining leveraged exposure to a bitcoin price proxy. MicroStrategy owns 226,500 bitcoins worth $13.8 billion — roughly half of its $26.3 billion market capitalization. The Norwegian sovereign wealth fund (NBIM) indirectly owns 2,446 BTC, an increase of 938 BTC from December 31, 2023. This Bitcoin news highlights a growing trend of institutional interest in digital assets, with governments worldwide holding substantial Bitcoin reserves. First, the recent approval of spot Bitcoin ETFs will increase demand, particularly among institutional investors.
Instead, the lesson here is that portfolio diversification is important, and AI is not the only way to make money in the stock market. Indeed, Wall Street experts think Bitcoin could surge as much as 77,675% in the coming decades, which implies identical gains in the iShares Bitcoin Trust. The United States is the largest governmental holder of bitcoin, with more than 212,000 BTC, primarily acquired through seizures related to criminal activity. The UK government holds around $3.5 billion worth of bitcoin, also mostly from confiscations. The fund has a global investment portfolio, which includes stakes in thousands of companies across various sectors.
During the same time, the sovereign wealth fund also upped its exposure to Coinbase from 0.49% to 0.83%, while also increasing its allocation to Block Inc. from 1.09% to 1.28%. First, not even the smartest Wall Street analyst knows the future, so forecasts are simply educated guesses. There is no guarantee Bitcoin comes anywhere close to the price targets I’ve discussed.
During the first half of 2024, Norway’s sovereign wealth fund increased its stake in MicroStrategy from 0.67% to 0.89%. Over the same period, MicroStrategy itself expanded its bitcoin holdings by 37,181 BTC. In recent years, as part of its diversification strategy, the fund has increased its exposure to companies involved in the Bitcoin tnorwegian-btc.fund industry. After all, a fund that charges 0.30% in annual expenses and has only $50 million in total assets would only generate $150,000 a year in management fees. That’s not a lot for a marketing budget, regulatory compliance work or other necessary expenses. In January, the SEC formally approved exchange-traded funds linked directly to bitcoin.
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These include Block Inc., a fintech firm led by Jack Dorsey; Marathon Digital, a Bitcoin mining company; and Coinbase, a major digital asset exchange. This comes from confiscating cryptocurrency after cracking down on criminal activity, rather than buying it as an investment, and has periodically engaged in sales of its seized crypto. The investment fund said it has reduced its exposure to Meta, Novo Nordisk and ASML in the first half of the year. Norway’s sovereign fund was set up in the 1990s to reinvest the country’s vast oil wealth across the world on behalf of its residents, encompassing several asset classes and geographies with a view to a long-term return.
With SEC approval of its conversion to an ETF, GBTC got a level playing field with the other 10 ETFs that won the SEC’s okay to operate. First-movers are often more successful at attracting shareholders and their money in the long run. ProShares Bitcoin Strategy ETF launched in 2021 as the first bitcoin futures ETF, and it is still the leader in that category. The iShares Bitcoin Trust ETF is one of the emerging leaders after January’s regulatory moves, thanks to a surge of shareholder money inflow. That is in part because sponsor BlackRock waived a portion of fees until total assets reached $5 billion to attract new investors.
Norway’s increased crypto holdings are not a result of the government wanting to safeguard itself from the risks and open itself to opportunities in the evolving global financial scene. Instead, the sovereign wealth fund’s growing exposure to cryptocurrencies, particularly Bitcoin, appears to be an unintentional consequence of its broader investment strategy. The fund now has more investment in cryptocurrencies because of its investments in companies that hold significant Bitcoin assets or are involved in the crypto space. Despite not investing directly in Bitcoin, Norway’s sovereign wealth fund is one of the most influential institutional investors globally. The fund’s actions might inspire major institutional investors to consider acquiring stocks in companies that hold Bitcoin to gain indirect exposure to its benefits.
In a surprising turn of events, Norway’s sovereign wealth fund has significantly increased its indirect Bitcoin exposure, marking a pivotal moment in cryptocurrency adoption. Norway’s surge in Bitcoin investments signals growing institutional confidence in digital assets, setting a precedent for global financial strategies. Norway’s indirect bitcoin holdings are part of a broader trend among governments around the world.
While there have been some funds that have provided indirect exposure over the last few years, the new funds give investors a way to tie their money very closely to the day-to-day movement of bitcoin prices on “spot” markets. Norway’s sovereign wealth fund, the world’s largest state pension fund, recently made headlines by significantly increasing its indirect exposure to bitcoin. According to Vetle Lunde, a senior analyst at K33 Research, Norway’s Bitcoin investment exemplifies how sophisticated financial strategies are now embracing digital assets. The fund’s BTC holdings surged by 62% from the end of 2023, attributed largely to algorithmic sector weighting and diversified risk management. This calculated approach highlights how traditional finance is integrating with modern digital asset frameworks. Bitcoin has generated substantial returns for investors this year, bolstered by the quadrennial Bitcoin halving event and the advent of Bitcoin ETF products in the U.S.
Specifically, trading news it is a constituent of the MSCI All Country World Index, Russell 2000 Index, S&P 600 Small Cap, S&P 600 Information Technology, and the MSCI ACWI IMI Fintech ESG Filtered Index. Recent analysis from AMBCrypto highlights that Bitcoin has encountered some downward pressure over the past 24 hours. At the time of this report, BTC is trading at approximately $58,000, reflecting a marginal decline of 0.5%.