An analyst claims that the biggest sovereign wealth fund in the world may have unintentionally purchased its famous Bitcoin exposure. Norway's Sovereign Wealth Fund enjoyed additional Bitcoin exposure since the year began as new figures show that the average Norwegian owns at least $27 in Bitcoin.
How Norway Obtained Its “Unintentional” Bitcoin Holdings
Norway's sovereign wealth fund increased its indirect exposure to 2,466 BTC as of the first half of the year. The fund, managed by Norges Bank Investment Management (NBIM), now holds Bitcoin-related holdings to the tune of $143 million, adding up to a total of 938 BTC since December 31, 2023.
The said Bitcoin exposure grew through investments in tech companies with extensive Bitcoin holdings. However, there's a report that the indirect investment was largely unintentional.
Tech firms holding Norway's sovereign wealth fund include MicroStrategy, Marathon Digital, and Block. Meanwhile, Microstrategy, under the leadership of Michael Saylor, boasts of one of the world's largest Bitcoin reserves. While Norway's sovereign wealth fund increased its stake in the company from 0.67% to 0.89% in Q1 and Q2 2024, MicroStrategy increased its Bitcoin holdings by 37,181 BTC.
At Marathon Digital, the fund climbed from 0% to 0.82%, while its Coinbase holdings increased from 0.49% to 0.83%. Block Inc. welcomed additional Bitcoin supply from Norway’s Sovereign wealth fund that saw its overall holdings increase from 1.09% to 1.28%.
Analyst Suggests Bitcoin Holdings of Norway's Sovereign Wealth Fund Likely Unintentional
K33 Research Senior analyst, Vetle Letunde has described Norway's BTC holdings as likely not due to any intentional strategy. According to Letunde, "The growth likely originates from predetermined algo-based sector weighting and risk diversification, it's unlikely to stem from an intentional choice to amass exposure."
Letunde made his understanding public via a social media post from his X handle after the Government of Norway released the financial report of its Government Pension Funds. The research analyst thinks a deliberate intention to purchase BTC would be more obvious as there would be additional "evidence of direct exposure initiatives."
Further asserting his view, Letunde points out that an increase in Norway’s BTC exposure “perfectly illustrates how Bitcoin is maturing as an asset and getting woven into any well-deserved portfolio.”
Meanwhile, Norway isn't the only country whose government holds BTC assets. Many other countries, including Germany, the United Kingdom, and the U.S., hold BTC in large amounts – mostly from seizures linked to criminal activities.
However, unlike most countries, El Salvador has gone on a deliberate BTC purchasing spree. The South American country holds over $5,690 BTC ($399 million) in reserve. El Salvador also holds BTC as a legal tender, earning itself a reputation of being one of the most BTC-friendly nations in the world.
Final Thoughts
The world's largest sovereign wealth fund has seen significant BTC exposure over the last two quarters of the year. K33 Research Senior analyst Vetle Letunde thinks it is unintentional and only based on "predetermined algo-based sector weighting and risk diversification."