Norges Bank, Norway’s $1.7 trillion sovereign wealth fund, faced a $40 billion loss in Q1 2025 due to a drop in US tech stocks. The bank's indirect Bitcoin exposure through stocks reached $356 million, posing sell pressure risks amidst global uncertainties. While Abu Dhabi's $437 million Bitcoin ETF stake suggests sovereign funds view Bitcoin as a hedge, Norges Bank's stance remains cautious. The fund, mainly index-driven, focuses on equities, with minimal gold holdings. Despite profitable investments in 2024, concerns arise over potential losses amid the ongoing trade war. While the fund's exposure to US tech stocks remains below benchmark, companies like Strategy and Coinbase hold significant Bitcoin reserves, indirectly linking the fund to the cryptocurrency market. Although buying a Bitcoin ETF seems unlikely, increasing investments in Bitcoin-related companies could be a strategic move for Norges Bank. Read more AI-generated news on: https://app.chaingpt.org/news
Norges Bank's $40 Billion Loss and Bitcoin Exposure
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