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According to an X post by Vetle Lunde, Head of Research at K33 Research, Norway’s sovereign wealth fund, called Norges Bank Investment Management (NBIM), saw its indirect Bitcoin (BTC) exposure rise by 153% in 2024.
NBIM’s Indirect Bitcoin Exposure Rises
The increasing adoption of BTC among corporations and nation-states is now reflected in financial instruments that may not necessarily have direct exposure to the digital asset. NBIM’s indirect BTC exposure grew from 2,446 BTC on June 30, 2024, to 3,821 BTC at the time of writing.
In terms of yearly growth, NBIM’s BTC exposure surged by approximately 153%, rising from 1,507 BTC at the end of 2023 to 3,821 BTC by the close of 2024. Lunde pointed out that this exposure stems from NBIM’s sector-based investment strategies rather than a deliberate effort to acquire BTC. He added:
NBIM’s indirect exposure is one of the strongest examples of how BTC is slipping into any well-diversified portfolio, and the growth is a testament to the market maturing and BTC ending up in any well-diversified portfolio, intended or not.
Essentially, Lunde emphasized that Bitcoin has matured to a point where it has become an indispensable part of major institutional investment strategies – whether intentionally or not.
Lunde also noted that NBIM has increased its exposure to Bitcoin-related entities such as the mining firm Riot Platforms and Japanese company Metaplanet. Additionally, despite earlier expectations of reduced exposure, NBIM has maintained a significant investment in MicroStrategy.
Notably, as of December 31, 2024, Norway’s per capita indirect BTC exposure stood at $64. Meanwhile, NBIM’s BTC exposure in USD terms has grown from $23 million in 2020 to $356 million in 2024.
BTC Adoption Among Sovereign Funds
While BTC adoption among corporations has been a growing trend in recent years, sovereign funds worldwide are increasingly warming up to the flagship cryptocurrency. A new report by Fidelity Digital Assets suggests that Bitcoin adoption by nation-states and government treasuries will drive the next wave of crypto expansion.
In October 2024, David Bailey, CEO of Bitcoin Magazine predicted that nation-state adoption of BTC will likely pick up in the coming years. At the time, Bailey said that there is an “undercurrent of Bitcoin nation-state adoption” occurring behind the scenes.
Recently, a Kansas state senator introduced a bill proposing that up to 10% of public employee retirement funds be allocated to Bitcoin ETFs. Similarly, North Dakota introduced a bill aiming to expand digital asset investments – including BTC – as a hedge against inflation.
Further, a report by Bitwise posited that BTC possesses characteristics that make it a potential form of ‘portfolio insurance’ against sovereign default risks. At press time, BTC trades at $101,868, down 0.6% in the past 24 hours.
Featured Image from Unsplash.com, Charts from X and TradingView.com
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