Norwegian sovereign wealth fund’s indirect Bitcoin holdings soar 62% in first half of 2024

The Norwegian Government Pension Fund, commonly known arsenic the Oil Fund, has indirect vulnerability to Bitcoin that roseate by 62% during the archetypal fractional of this twelvemonth to the equivalent of 2,446 BTC, according to the Senior Analyst astatine K33 Research Vetle Lunde.

This equates to an summation of 938 BTC since December 2023, erstwhile the steadfast indirectly held the equivalent of 1,507 BTC.

Norwegian Sovereign Wealth Fund Indirect Bitcoin Holding (Source: X/Vetle Lunde)

The Norwegian Pension Fund is the world’s largest sovereign wealthiness fund, with assets amounting to $1.7 trillion, according to its latest reports.

NIBM’s Bitcoin exposure

Lunde attributed this maturation much to automated assemblage adjustments and hazard diversification than a deliberate strategy to summation Bitcoin holdings.

He explained:

“[This summation was] improbable to stem from an intentional prime to amass exposure—if accrued BTC vulnerability was the target, we’d spot much grounds of nonstop vulnerability initiatives (and importantly larger exposure).”

Meanwhile, the fund’s Bitcoin vulnerability comes from investments successful starring Bitcoin-related companies, including MicroStrategy, Marathon Digital, Coinbase, and Block Inc.

In the archetypal fractional of 2024, the fund’s involvement successful MicroStrategy roseate from 0.67% to 0.89%, arsenic MicroStrategy boosted its holdings successful Bitcoin presumption by 37,181 BTC. Additionally, the money accrued its shares successful Coinbase from 0.49% to 0.83% and Block Inc from 1.09% to 1.28%. It besides added a 0.82% presumption successful Marathon Digital.

Lunde pointed retired that the fund’s indirect Bitcoin vulnerability amounted to 44,476 sats (approximately $27) per capita astatine the extremity of the year’s archetypal half.

Other funds exposure

The Norwegian fund’s vulnerability to Bitcoin aligns with existent trends observed successful different pension funds, specified arsenic the Wisconsin Pension Fund, which person besides accrued their vulnerability to the apical crypto.

Market observers noted that these investments bespeak the increasing acceptance of BTC arsenic a viable alternate investment. This displacement began earlier this twelvemonth aft spot Bitcoin exchange-traded money (ETF) products were introduced successful the US, making the plus people a viable enactment among accepted investors.

Lunde explained that these moves showed that “Bitcoin is maturing arsenic an plus and getting woven into immoderate well-diversified portfolio!”

The station Norwegian sovereign wealthiness fund’s indirect Bitcoin holdings soar 62% successful archetypal fractional of 2024 appeared archetypal connected CryptoSlate.