Anika Begay
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 the hidden holder of the largest cryptocurrency on the market.
An unexpected Bitcoin whale?
According to a recent analyses According to Vetle Lunde, an analyst at K33 Research, NBIM, which manages the Norwegian Government Pension Fund Global, now indirectly owns 2,446 Bitcoin (BTC), which represents a significant increase of 938 BTC compared to the end of 2023.
Lunde explained that the growth is likely to be due to a predetermined sector weighting based on algorithms and risk diversification. “It is unlikely to be due to an intentional choice to accumulate exposure, if increased BTC exposure were the goal, we would see more evidence of direct exposure initiatives (and significantly more exposure).”
Despite the passive nature of NBIM’s Bitcoin accumulation, the fund’s growing indirect exposure to the cryptocurrency underscores Bitcoin’s continued maturation as a asset classMonday said.
Thanks to corporate BTC treasury strategies developed by Microstrategy CEO and founder Michael Saylor, Jack Dorsey and others, Norway’s per capita indirect exposure amounted to 44,476 sats ($27) by the end of H1 2024.
Tracing NBIM’s Cryptographic Ties
Lunde’s analysis delves into the specific factors behind NBIM’s growing indirect exposure to Bitcoin:
- Increased MicroStrategy Exposure: From 0.67% to 0.89%. MicroStrategy, a leading business intelligence firm, has been a major corporate Bitcoin advocate, accumulating significant BTC assets.
- MicroStrategy BTC Holdings Growth: The company increased its Bitcoin exposure by 37,181 BTC in the first half of 2024.
- Marathon Digital Exposure: 0% to 0.82%. Marathon Digital is a leading Bitcoin mining company that has accumulated BTC on its balance sheet.
- Increased exposure to Coinbase: from 0.49% to 0.83%. As the largest cryptocurrency exchange in the United States, Coinbase’s growing importance has resulted in increased indirect exposure to Bitcoin for NBIM.
- Increased exposure to Block Inc. (formerly Square): from 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 suggests, the fund’s growing exposure to BTC is a clear indication of the growing adoption of BTC for diversification and growth purposes across countries and funds around the world.
As more and more traditional financial institutions and sovereign wealth funds follow suit, Bitcoin’s future integration into the global financial system appears to follow a steady trajectory, supporting both the token’s price and other institutions’ overall exposure to the cryptocurrency market.
At the time of writing, the largest cryptocurrency on the market is trading at $59,490, missing the $60,000 mark again after repeated failed attempts to consolidate above this key level for BTC’s prospects.
Featured image from DALL-E, chart from TradingView.com
