Bitrabo Editorial
As Bitcoin adoption gains momentum worldwide among countries and traditional financial institutions, Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), has quietly become a significant holder of the leading cryptocurrency in the market.
Surprising Bitcoin Investor?
An analysis by K33 Research analyst Vetle Lunde revealed that NBIM, managing the Norwegian Government Pension Fund Global, now indirectly owns 2,446 Bitcoin (BTC), showing a notable increase of 938 BTC from the previous year.
Lunde suggested that this growth is likely due to predetermined algorithm-based sector weighting and risk diversification rather than a deliberate decision to increase BTC exposure.
Despite the passive nature of NBIM’s Bitcoin accumulation, the fund’s rising indirect exposure to the cryptocurrency highlights Bitcoin’s ongoing evolution as an asset class, according to Lunde.
Thanks to corporate Bitcoin treasury strategies adopted by various companies, NBIM’s per capita exposure was $27 by the first half of 2024.
Examining NBIM’s Crypto Connections
Lunde’s analysis outlined the factors driving NBIM’s growing indirect exposure to Bitcoin:
- Increased exposure to MicroStrategy: 0.67% to 0.89%. MicroStrategy, known for holding a substantial BTC treasury, played a significant role in this increase.
- MicroStrategy’s BTC holdings growth: The company added 37,181 BTC in the first half of 2024.
- Exposure in Marathon Digital: 0% to 0.82%. Marathon Digital, a prominent Bitcoin mining company, has been accumulating BTC.
- Increased exposure in Coinbase: 0.49% to 0.83%. The growth of Coinbase, a leading US cryptocurrency exchange, led to increased indirect exposure for NBIM.
- Increased exposure in Block Inc. (formerly Square): 1.09% to 1.28%. Block Inc., co-founded by Jack Dorsey, has been promoting Bitcoin integration within its services.
While NBIM’s growing Bitcoin exposure may not be a deliberate strategy to amass the cryptocurrency, it indicates the increasing acceptance of BTC for diversification and growth by countries and funds globally.
As more traditional financial institutions and sovereign wealth funds embrace Bitcoin, the integration of BTC into the global financial landscape seems to be progressing steadily, influencing both its price and expanding institutional exposure to the crypto market.
Currently, Bitcoin is trading at $59,490, struggling to surpass the $60,000 mark after several attempts to consolidate above this crucial level for its future prospects.
Featured image from DALL-E, chart from TradingView.com