As Bitcoin adoption gains traction globally among countries and traditional financial institutions (TradFi), Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), has emerged as a stealth holder of the largest cryptocurrency on the market.

Unexpected Bitcoin Whale?

According to a recent analysis by K33 Research analyst Vetle Lunde, NBIM, which manages Norway’s government pension fund Global, now indirectly owns 2,446 Bitcoin (BTC), representing a significant increase of 938 BTC from the end of 2023.

Lunde explained that growth is likely to come from predetermined algo-based sector weighting and risk diversification. “It’s unlikely to come from a conscious decision to gain exposure – if it’s increased BTC If exposure were the goal, we would see more evidence of direct exposure initiatives (and significantly greater exposure).”

Despite the passive nature of NBIM’s Bitcoin accumulation, the fund’s growing indirect exposure to the cryptocurrency underscores Bitcoin’s continued maturation as a asset classsaid Lunde.

Thanks to the corporate BTC treasury strategies of Michael Saylor, CEO and founder of Microstrategy, Jack Dorsey and others, Norway’s indirect sat exposure per capita amounted to 44,476 sats ($27) at the end of the first half of 2024.

Tracing NBIM’s crypto bands

Lunde’s analysis delves deeper into the specific factors behind NBIM’s increasing indirect exposure to Bitcoin:

• Increased exposure to MicroStrategy: from 0.67% to 0.89%. MicroStrategy, a leading business intelligence company, is a prominent corporate Bitcoin advocate and has built a significant BTC treasury.
• MicroStrategy’s Own BTC Holdings Growth: The company increased its Bitcoin exposure by 37,181 BTC in the first half of 2024.
• Exposure in Marathon Digital: From 0% to 0.82%. Marathon Digital is a prominent Bitcoin mining company that has accumulated BTC on its balance sheet.
• Increased exposure in Coinbase: from 0.49% to 0.83%. As the largest cryptocurrency exchange in the United States, Coinbase’s growing prominence has translated into increased indirect Bitcoin exposure for NBIM.
• Increased exposure in Block Inc. (formerly Square): 1.09% to 1.28%. The financial services and digital payments company co-founded by Jack Dorsey has proposed Bitcoin integration within its ecosystem.

While NBIM’s indirect BTC exposure may not be the result of a deliberate strategy to cryptocurrencyAccording to the analyst, the fund’s growing exposure to BTC is a clear indication of the increasing adoption of BTC for diversification and growth in countries and funds around the world.

With more traditional financial institutions and sovereign wealth funds following suit, Bitcoin’s future integration into the global financial system appears to be on a steady trajectory, supporting both the token’s price and other institutions’ overall exposure to the token. crypto market.

At the time of writing, the largest cryptocurrency on the market is trading at $59,490. The price has fallen again to $60,000, after repeated failed attempts to break above this important level for BTC’s prospects.

Main image of DALL-E, chart from TradingView.com