According to crypto research firm K33 Research, the world's largest national sovereign wealth fund—the Norwegian Sovereign Wealth Fund—increased its indirect Bitcoin (BTC) exposure by 192% over the past year.
The fund has an indirect exposure of 7,161 Bitcoin through its portfolio, including investments in Strategy, Metaplanet, and the crypto exchange Coinbase.
The fund currently holds over 11.9 billion Norwegian Krone (approximately $1.2 billion) in Strategy shares, having grown 133% since 2024. Similarly, its holdings in Coinbase have increased by over 96% since 2024.
Norway's increased Bitcoin holdings reflect a broader trend of sovereign wealth funds increasing indirect exposure through Bitcoin instruments and corporate proxies, as the world's first cryptocurrency gradually integrates into the traditional financial system.
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Sovereign and national wealth funds are entering the crypto market through the back door.
Sovereign wealth and national pension funds typically invest in specific asset classes, such as fixed income securities, corporate bonds, and stocks, as mandated by law.
Due to these restrictions, fund managers typically hold Bitcoin or other cryptocurrencies indirectly through ETFs, corporate bonds, or agents like Strategy.
The State of Wisconsin Investment Board (SWIB) is the first state-level pension fund in the U.S. to disclose indirect Bitcoin exposure in a BTC ETF, with an investment amount of $164 million.
In February, SWIB revealed that its BTC holdings nearly doubled, soaring to over $321 million, according to SEC filings.
The pension manager sold their BTC holdings in May but retained a $50 million position in Strategy.
Kazakhstan's sovereign wealth fund announced in July plans to convert some of its assets into cryptocurrency.
Timur Suleimenov, the governor of the National Bank of Kazakhstan, stated that the plan aims to generate more investment returns for the wealth fund, and the government is also exploring the possibility of converting other assets like gold and foreign exchange reserves into cryptocurrencies.
Magazine: Pakistan plans to use Bitcoin reserves for DeFi yields.
