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Norway's $1.7 trillion sovereign wealth fund (NBIM) has increased its indirect exposure to bitcoin (btc) to 2,446 coins by investing in cryptocurrency companies such as Coinbase, Marathon Digital, and MicroStrategy.
NBIM’s indirect exposure has increased from 938 btc at the end of December to 2,446 btc. This increase is a result of NBIM increasing its exposure to some of the most important companies in the Web3 space, according to Lunde.
“This perfectly illustrates how bitcoin is maturing as an asset and how it is integrating into any well-diversified portfolio.” said K33 Research analyst Vetle Lunde in an Aug. 14 post on x.
NBIM allocates more capital to Marathon, Microstrategy and Block Inc.
The fund's exposure to MicroStrategy, which is currently under the leadership of bitcoin Attorney Michael Saylor rose from 0.67% to 0.89%.
During the first half of the year, MicroStrategy also added 37,181 btc to its reserves, contributing to NBIM’s indirect exposure to the leading cryptocurrency.
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The Norwegian sovereign wealth fund (NBIM) indirectly holds 2,446 btc, an increase of 938 btc since December 31, 2023.
Growth is likely to be driven by algorithm-based predetermined sector weighting and risk diversification. It is unlikely to be due to an intentional choice to accumulate… image.twitter.com/8HBIbemgNU
– Vetle Lunde (@VetleLunde) twitter.com/VetleLunde/status/1823634527157162282?ref_src=twsrc%5Etfw”>August 14, 2024
Other factors that added to NBIM’s indirect exposure to btc include the 0.82% increase in capital allocated to Marathon Digital.
During the same time, the sovereign wealth fund also increased its exposure to Coinbase from 0.49% to 0.83%, while increasing its allocation to Block Inc. from 1.09% to 1.28%.
NBIM’s indirect exposure to bitcoin is not “intentional”
Lunde said the growth in NBIM’s indirect exposure to btc “likely stems from algorithm-based default sector weighting and risk diversification.”
He added that it is “unlikely that this arises from an intentional choice to accumulate exposure.”
If the NBIM were deliberately seeking to increase its capital allocation to bitcoinTheir exposure would be “significantly higher,” according to Lunde.
However, the analyst believes that NBIM’s current investments “show how bitcoin is maturing as an asset.”
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