#xrpetf The Norwegian sovereign fund lost 40 billion dollars in the first quarter. Will it increase its exposure to Bitcoin?
The Norwegian sovereign fund, worth 1.7 trillion dollars, suffered significant losses in the first quarter. Should it increase or decrease its exposure to Bitcoin?
Key points:
Norges Bank lost 40 billion dollars in the first quarter of 2025 due to the decline in U.S. tech stocks, exposing the risk of concentrated positions.
The bank's indirect exposure to Bitcoin through stocks reached 356 million dollars, increasing the risk of sell pressure amid concerns over a global trade war and a recession.
Abu Dhabi's 437 million dollar stake in spot Bitcoin ETFs shows that sovereign funds see Bitcoin as a hedge.
Norges Bank, the sovereign fund of Norway with 1.7 trillion dollars, reported a loss of 40 billion dollars in the first quarter of 2025, with most of the decline caused by a decrease in the value of publicly traded U.S. tech companies. Norges Bank also indirectly owned 3,821 BTC through its investments in the stock market at the end of 2024, which presents a potential sell pressure risk for Bitcoin, especially considering the sociopolitical uncertainty and the risk of an economic recession caused by the global trade war.
In such times, could Norges Bank increase its investments in Bitcoin-related companies or even buy spot Bitcoin exchange-traded funds (ETFs) as a way to hedge risks?
For now, it seems unlikely that the Norwegian investment fund will consider buying a Bitcoin ETF, especially since the fund does not own gold. In addition to stocks and bonds, Norges Bank invests in real estate, including commercial, industrial, renewable energy, and logistics properties around the world.
