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Until January 11, due to SEC regulations, bitcoin ETFs could not trade bitcoin at its current, or spot price. Rather, fund managers had to own companies and other ETFs that were related to bitcoin or cryptocurrency in general or they owned bitcoin futures contracts. Futures are complex derivatives instruments that should only be traded by experienced investors. One factor that makes futures markets popular with some investors is the potential for “leverage”—in other words, the ability to trade with borrowed cash to supercharge your bets. Nevertheless, like all leveraged equity plays, Norway’s central bank does have exposure to this bitcoin price proxy.

During the first half of 2024, Norway’s sovereign wealth fund increased its stake in MicroStrategy from 0.67% to 0.89%. Over the same period, MicroStrategy itself expanded its bitcoin holdings by 37,181 BTC. In recent years, as part of its diversification strategy, the fund has increased its exposure to companies involved in the Bitcoin industry. After all, a fund that charges 0.30% in annual expenses and has only $50 million in total assets would only generate $150,000 a year in management fees. That’s not a lot for a marketing budget, regulatory compliance work or other necessary expenses. In January, the SEC formally approved exchange-traded funds linked directly to bitcoin.

The fund’s exposure to MicroStrategy, which is currently under the leadership of Bitcoin advocate Michael Saylor, has risen from 0.67% to 0.89%. Importantly, halving events reduce selling pressure from the mining community, simply because miners are minting less Bitcoin to sell. For instance, Michael Saylor estimates the April 2024 halving event will cut selling pressure from $12 billion per year to $6 billion per year. Accordingly, Bitcoin has consistently peaked 12 to 18 months following each halving event in the past, as shown in the chart below. The Central American nation, where bitcoin is legal tender, has deliberately built up a reserve of 5,800 BTC, worth approximately $339 million.

Norway’s $1.7 trillion sovereign wealth fund (NBIM) has increased its indirect exposure to Bitcoin (BTC) to 2,446 coins by investing in crypto companies such as Coinbase, Marathon Digital and MicroStrategy. The sovereign wealth fund assets have resulted in indirect benefits for all Norwegian citizens. The fund’s assets, worth $1.7 trillion, represent the wealth of Norway’s entire population so any gains made from its investments are considered to belong to the citizens. As of the first half of 2024, the fund’s indirect exposure to Bitcoin resulted in 2,446 BTC, which is approximately $143 million.

In other words, Norges Bank managers’ decision to invest in MicroStrategy is less endorsement and more reflection of a broad, diversified investment strategy. Indeed, Norges Bank has global exposure across 66 countries, 8,763 companies, 1,488 bonds, and nearly 899 real estate properties. As more companies integrate bitcoin into their corporate treasuries, institutional investors may find themselves with increasing exposure to bitcoin, even if it’s not a deliberate part of their investment strategy. According to data from K33 Research, as of the first half of 2024, the Norwegian sovereign wealth fund holds an indirect exposure to 2,446 bitcoin, which is currently valued at around $144 million. Jeff Reeves writes about investments, the stock market, exchange-traded funds and retirement topics.

According to K33Research, the Norwegian sovereign wealth fund (NBIM) now has indirect exposure to 2,446 BTC through investments in tech firms with exposure to the cryptocurrency. Its “holdings,” worth just over $143 million, have increased by 938 BTC since December 31, 2023. The Norwegian sovereign wealth fund’s decision led to an indirect increase in its crypto holdings, representing a big step towards widespread mainstream adoption of virtual currencies. Norway could be at the forefront in a future where crypto assets play an important role in the global economy due to indirectly giving citizens a $27 stake in Bitcoin.

While recent Bitcoin news has reported a slight dip in daily active addresses, the overall picture remains strong. The number of daily active Bitcoin addresses continues to exceed the crucial 500,000 threshold. This increase, despite some market fluctuations, strongly indicates that more individuals and entities are entering the Bitcoin ecosystem. Anna Fund is an automated quantitative long/short algorithmic fund with a strategy rooted in behavioralfinance and specialized in Bitcoin derivatives. If the NBIM were deliberately looking to increase its capital allocation to BTC, its exposure would be “significantly larger,” according to Lunde. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Ronaldo is a crypto news seasoned crypto enthusiast with over four years of experience in the field. He is passionate about exploring the vast and dynamic world of decentralized finance (DeFi) and its practical applications for achieving economic sovereignty. Ronaldo is constantly seeking to expand his knowledge and expertise in the DeFi space, as he believes it holds tremendous potential for transforming the traditional financial landscape.

With SEC approval of its conversion to an ETF, GBTC got a level playing field with the other 10 ETFs that won the SEC’s okay to operate. First-movers are often more successful at attracting shareholders and their money in the long run. ProShares Bitcoin Strategy ETF launched in 2021 as the first bitcoin futures ETF, and it is still the leader in that category. The iShares Bitcoin Trust ETF is one of the emerging leaders after January’s regulatory moves, thanks to a surge of shareholder money inflow. That is in part because sponsor BlackRock waived a portion of fees until total assets reached $5 billion to attract new investors.

These include Block Inc., a fintech firm led by Jack Dorsey; Marathon Digital, a Bitcoin mining company; and Coinbase, a major digital asset exchange. This comes from confiscating cryptocurrency after cracking down on criminal activity, rather than buying it as an investment, and has periodically engaged in sales of its seized crypto. The investment fund said it has reduced its exposure to Meta, Novo Nordisk and ASML in the first half of the year. Norway’s sovereign fund was set up in the 1990s to reinvest the country’s vast oil wealth across the world on behalf of its residents, encompassing several asset classes and geographies with a view to a long-term return.

While there have been some funds that have provided indirect exposure over the last few years, the new funds give investors a way to tie their money very closely to the day-to-day movement of bitcoin prices on “spot” markets. Norway’s sovereign wealth fund, the world’s largest state pension fund, recently made headlines by significantly increasing its indirect exposure to bitcoin. According to Vetle Lunde, a senior analyst at K33 Research, Norway’s Bitcoin investment exemplifies how sophisticated financial strategies are now embracing digital assets. The fund’s BTC holdings surged by 62% from the end of 2023, attributed largely to algorithmic sector weighting and diversified risk management. This calculated approach highlights how traditional finance is integrating with modern digital asset frameworks. Bitcoin has generated substantial returns for investors this year, bolstered http://tnorwegian-btc.fund/ by the quadrennial Bitcoin halving event and the advent of Bitcoin ETF products in the U.S.

Thanks to the friction of levered funds—that is, the combined direct and indirect costs of trading them—you are unlikely to ever get a performance that is exactly twice bitcoin’s performance. But with a gain of about 51% since its June 2023 inception date, it’s hard to argue there isn’t a use for this admittedly aggressive bitcoin ETF. With a few hundred million in assets, BTCO is gathering support that could cement it as one of the few 100% bitcoin funds that might have staying power. That presumes that investors who recently piled in because of the fee waiver don’t bolt if the waiver expires this summer. Invesco Galaxy Bitcoin ETF, another spot bitcoin fund, is on our list because of its generous approach to winning new business.

We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. Last week, Morgan Stanley Morgan Stanley could soon give the green light to its 15,000 brokers to recommend the spot bitcoin ETFs to clients, it was reported by AdvisorHub, citing anonymous sources. Bitcoin Bitcoin has stabilized following a sudden “perfect storm” sell-off over the last week that wiped $300 billion from the combined bitcoin and crypto market. Delving deeper into Bitcoin news analysis, recent data from Santiment reveals an encouraging trend in user adoption.

In a surprising turn of events, Norway’s sovereign wealth fund has significantly increased its indirect Bitcoin exposure, marking a pivotal moment in cryptocurrency adoption. Norway’s surge in Bitcoin investments signals growing institutional confidence in digital assets, setting a precedent for global financial strategies. Norway’s indirect bitcoin holdings are part of a broader trend among governments around the world.

Other factors that added to the NBIM’s indirect BTC exposure include the 0.82% increase in capital allocated to Marathon Digital. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong. Bitcoin hit a record high of $73,000 earlier this year, prior to the April halving event. So, history says its price will exceed that level sometime between April 2025 and October 2025. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

So-called “spot” bitcoin ETFs can hold the digital asset without equivocation or complications. By owning shares of MicroStrategy, Norway’s central bank is gaining leveraged exposure to a bitcoin price proxy. MicroStrategy owns 226,500 bitcoins worth $13.8 billion — roughly half of its $26.3 billion market capitalization. The Norwegian sovereign wealth fund (NBIM) indirectly owns 2,446 BTC, an increase of 938 BTC from December 31, 2023. This Bitcoin news highlights a growing trend of institutional interest in digital assets, with governments worldwide holding substantial Bitcoin reserves. First, the recent approval of spot Bitcoin ETFs will increase demand, particularly among institutional investors.

However, it is important to note that Norway’s sovereign wealth fund is not directly investing in Bitcoin or any other cryptocurrency, but they are investing in companies like MicroStrategy, Coinbase, Marathon Digital, and Block Inc. These companies have since increased their Bitcoin holdings, allowing for indirect exposure to these funds, and allowing them to grow accordingly. All of the funds included in this list are pure-play bitcoin portfolios, offering direct exposure to bitcoin through either spot prices or bitcoin futures.