The Norwegian government pension fund, commonly known as the Oil Fund, has an indirect exposure to Bitcoin that rose 62% to the equivalent of 2,446 BTC in the first half of this year, according to senior analyst at K33 Research Vetle Lunde.
This represents an increase of 938 BTC since December 2023, when the company indirectly held the equivalent of 1,507 BTC.
The Norwegian Pension Fund is the largest sovereign wealth fund in the world, with assets worth $1.7 trillion. reports.
NIBM’s Exposure to Bitcoin
Lunde attributed this growth more to automated sector adjustments and risk diversification than to a deliberate strategy to increase Bitcoin ownership.
He explained:
“[This increase was] This is unlikely to arise from a deliberate choice to gain exposure – if greater exposure to BTC were the goal, we would see more evidence of direct exposure initiatives (and significantly greater exposure).”
Meanwhile, the fund’s Bitcoin exposure comes from investments in leading Bitcoin-related companies including MicroStrategy, Marathon Digital, Coinbase and Block Inc.
In the first half of 2024, the fund’s holdings in MicroStrategy increased from 0.67% to 0.89% as MicroStrategy increased its holdings in Bitcoin terms by 37,181 BTC. Additionally, the fund increased its holdings in Coinbase from 0.49% to 0.83% and Block Inc from 1.09% to 1.28%. It also added a 0.82% position in Marathon Digital.
Lunde pointed out that the fund’s indirect Bitcoin exposure stood at 44,476 sats (about $27) per capita at the end of the first half of the year.
Exposure to other funds
The Norwegian fund’s exposure to Bitcoin is in line with current trends seen at other pension funds, such as the Wisconsin Pension Fund, which have also increased their exposure to the top cryptocurrencies.
Market observers noted that these investments reflect the growing acceptance of BTC as a viable alternative investment. This shift began earlier this year after spot Bitcoin exchange-traded fund (ETF) products were introduced in the US, making the asset class a viable option among traditional investors.
Lunde explained that these steps showed that “Bitcoin is maturing as an asset and becoming woven into every well-diversified portfolio!”