As Bitcoin adoption continues to gain momentum globally among countries and traditional financial institutions (TradFi), Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), has emerged as a secret holder of the largest cryptocurrency on the market.
Unexpected Bitcoin Whale?
According to a recent study analysis K33 Research analyst Veitel Lund said that NBIM, which manages the Norwegian government’s global pension fund, now indirectly owns 2,446 Bitcoin (BTC), a significant increase of 938 BTC from the end of 2023.
The growth is likely to stem from algorithmic sector weighting and risk diversification, Lund explained. “It is unlikely to stem from a deliberate choice to aggregate exposure – if it increases Bitcoin “If exposure is the goal, we will see more evidence of direct exposure initiatives (and much greater exposure).”
Despite the passive nature of NBIM’s Bitcoin accumulation, the fund’s increasing indirect exposure to the cryptocurrency underscores the continued maturity of Bitcoin as an investment vehicle. Asset ClassLund said.
Thanks to Bitcoin treasury strategies developed by Michael Saylor, CEO and founder of Microstrategy, Jack Dorsey, and others, Norway’s per capita indirect exposure reached 44,476 sats ($27) by the end of the first half of 2024.
Track NBIM’s Cryptocurrency Relationships
Lundy’s analysis examines the specific factors behind NBIM’s expanding indirect exposure to Bitcoin:
- MicroStrategy exposure increased: from 0.67% to 0.89%. MicroStrategy, a leading business intelligence firm, has been a prominent supporter of Bitcoin, amassing a large treasury of Bitcoin.
- MicroStrategy’s BTC Holdings Grow: The company increased its exposure to Bitcoin by 37,181 BTC in the first half of 2024.
- Exposure to Marathon Digital: 0% to 0.82%. Marathon Digital is a prominent Bitcoin mining company that accumulates Bitcoin on its balance sheet.
- Coinbase exposure increased: from 0.49% to 0.83%. As the largest cryptocurrency exchange in the United States, Coinbase’s growing popularity has translated into increased indirect Bitcoin exposure for NBIM.
- Increased exposure to Block Inc. (formerly Square): 1.09% to 1.28%. The financial services and digital payments company, co-founded by Jack Dorsey, has proposed integrating Bitcoin into its ecosystem.
While NBIM’s indirect exposure to BTC may not be the result of a deliberate strategy to accumulate CryptocurrencyAs the analyst noted, the fund’s increasing exposure to Bitcoin is a clear indicator of the growing adoption of Bitcoin for diversification and growth among countries and funds around the world.
With traditional financial institutions and sovereign wealth funds following suit, the future integration of Bitcoin into the global financial system appears to be on a steady path, supporting the token’s price and other institutions’ overall exposure to Cryptocurrency Market.
At the time of writing, the largest cryptocurrency in the market is trading at $59,490, having once again missed the $60,000 mark after repeated failed attempts to consolidate above this key level for BTC’s prospects.
Featured image by DALL-E, chart by TradingView.com
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