The Average Norwegian Indirectly “Owns” Bitcoin Worth $27
As of the first half of 2024, the average Norwegian owns about $27 worth of Bitcoin indirectly, thanks to their country’s sovereign wealth fund. This fund has made investments that have resulted in exposure to 2,446 BTC, valued at over $143 million. The Norwegian sovereign wealth fund, also known as NBIM, manages investments made from the country’s substantial oil revenues on behalf of its 5.5 million population.
Norwegian Exposure to Bitcoin Through Wealth Fund
- The NBIM has indirect exposure to 2,446 BTC through investments in tech firms.
- This exposure has increased by 938 BTC since December 31, 2023.
- Vetle Lunde from K33Research noted that this exposure is unlikely to stem from an intentional choice by the country.
- If Norway intended to increase Bitcoin exposure, there would be more direct evidence of such initiatives.
Growth in Exposure to Bitcoin
- Norway’s exposure to Bitcoin has been growing due to investments in companies like MicroStrategy, Block, and Marathon Digital.
- MicroStrategy, under the leadership of Michael Saylor, is among the largest holders of Bitcoin in the world.
- Norway increased its holdings in MicroStrategy stock and saw MicroStrategy increase its Bitcoin exposure significantly.
- The wealth fund also invested in other entities like Marathon Digital, Coinbase, and Block, Inc.
Maturing of Bitcoin as an Asset
- Lunde mentioned that the statistics indicate how Bitcoin is evolving as an asset in global portfolios.
- The fund focuses on diversification to reduce risk as part of its investment strategy.
Which Countries Hold the Most Bitcoin?
Various governments worldwide hold significant amounts of Bitcoin, but it’s often not a deliberate investment decision.
Bitcoin Reserves of Different Countries
- The US Government holds over $12.5 billion worth of Bitcoin, representing about 1% of the global supply.
- These reserves stem from confiscation of illicitly obtained cryptocurrency.
- There have been occasional sales of seized Bitcoin by the US Government.
- The UK also holds a substantial amount of Bitcoin, totaling $3.5 billion.
- Similar to the US, the UK does not sell the Bitcoin it confiscates.
- El Salvador has actively built up a reserve of Bitcoin as part of its policy.
- The country holds reserves of 5,800 Bitcoin, worth around $339 million.
- With Bitcoin as legal tender, this amounts to nearly $54 per citizen.
Hot Take: Bitcoin Investments by National Wealth Funds
National wealth funds, like that of Norway, are indirectly exposing their citizens to Bitcoin through strategic investments. This trend reflects the evolving nature of cryptocurrency within traditional investment portfolios across the globe. As governments and institutions navigate the maturation of Bitcoin as an asset, the landscape of digital currency holdings continues to expand.
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