Norway, a country in Northern Europe, has a population of nearly 5.5 million. In addition, government investments for its citizens amount to about $1.7 trillion. Part of that amount is in Bitcoin stocks, and the government increased its holdings this year.
Norway’s sovereign wealth fund goes on the hunt for bitcoin
Norway now indirectly owns 2,446 BTC through its investments in crypto stocks. This is bullish news for Bitcoin. It paints an attractive picture of global sovereign support for the BTC price.
A recent report from Fortune magazine details how the Norges Bank Investment Management fund has significantly increased its exposure to bitcoin after rebalancing its portfolio this year. The fund invests the country’s significant oil revenues into profitable ventures for Norway’s government.
Norway’s public fund drastically reduced its holdings of shares in Meta and other tech giants (from which it made billions this year). After that, it transferred the money to Web3 stocks such as MicroStrategy, Coinbase, Block and Marathon Digital.
Bitcoin stocks boost Norwegian government investments
Nicolai Tangen, CEO of Norges Bank Investment Management, said:
“Equity investments delivered a very solid performance in the first half of the year. The result was driven mainly by technology stocks, due to the increased demand for new artificial intelligence solutions.”
Along with big tech stocks, Bitcoin delivered massive returns to investors this year, coinciding with the quadrennial halving of Bitcoin’s supply and the launch of several ETF products in the United States following approval by the U.S. Securities and Exchange Commission.
According According to Fortune, the big moves increased Norway’s exposure to Bitcoin by 62% in the first half of 2024. Vetle Lunde, a senior analyst at Norwegian digital asset strategy firm K33 Research, recently broke down the math on Norway’s crypto investments in a post on X:
The Norwegian sovereign wealth fund (NBIM) indirectly holds 2,446 BTC, an increase of 938 BTC since December 31, 2023.
Growth is likely to be driven by algorithm-based predetermined sector weighting and risk diversification. It is unlikely to be due to an intentional choice to accumulate… image.twitter.com/8HBIbemgNU
– Vetle Lunde (@VetleLunde) August 14, 2024
“The Norwegian sovereign wealth fund (NBIM) indirectly holds 2,446 BTC, up 938 BTC since December 31, 2023,” Lunde wrote. The analyst noted that such exposure to Bitcoin “perfectly illustrates how Bitcoin is maturing as an asset and is finding its way into any well-diversified portfolio.”
Governments do the math
Meanwhile, in the United States, Senator Cynthia Lummis (Republican of Wyoming) recently proposed establish a Bitcoin strategic reserve, a policy that received the backing of Republican presidential candidate former President Donald Trump.
In El Salvador, where Bitcoin is legal tender, President Nayib Bukele has been buying Bitcoin on-chain since 2021. His strategy taxpayers returned There is a 55% gain when Bitcoin ptoice increased this year.
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