Norway’s $1.7 trillion sovereign wealth fund has had a strong start to the year, achieving double-digit growth, reducing its exposure to major tech companies, and increasing its involvement in the crypto market.
Norges Bank Investment Management, which manages the fund by reinvesting revenue from Norway’s oil reserves, has notably increased its indirect exposure to Bitcoin in 2024.
Vetle Lunde, a senior analyst at K33 Research, analyzed the data on X to detail the fund’s evolving crypto exposure during the first half of 2024. By expanding its investments in crypto-related companies like Coinbase, Marathon Strategy, Block Inc., and Marathon Digital, the fund has increased its indirect Bitcoin holdings by 62% in the first half of the year.
Lunde suggests that this increase is likely due to algorithm-based sector weighting and risk management strategies rather than a deliberate effort to accumulate Bitcoin. Currently, Norway’s investment bank holds 2,446 BTC, valued at approximately $142.9 million. On a per capita basis, this equates to about $27 worth of Bitcoin for each of Norway’s 5.5 million residents.
Lunde noted that if the fund had intentionally aimed to increase its Bitcoin exposure, there would be more direct initiatives and a significantly larger investment. Nevertheless, this development underscores Bitcoin’s maturation as an asset and its growing presence in diversified portfolios.
Bitcoin’s value has risen by over 30% this year, driven by the surge in tech stocks and new regulations that allow crypto to be included in exchange-traded funds (ETFs).
Norway’s sovereign wealth fund, established in the 1990s, was designed to reinvest the nation’s substantial oil wealth globally, spanning various asset classes and regions with a focus on long-term returns. In the first half of 2024, the fund grew by 8.6%, with equity investments seeing a 12% rise. However, the fund slightly underperformed its benchmark, the FTSE Global All Cap Index, by 0.04%.
“The equity investments delivered a very strong return in the first half of the year, mainly driven by the surge in technology stocks due to increased demand for artificial intelligence solutions,” said Nicolai Tangen, CEO of Norges Bank Investment Management.
During the same period, the fund reduced its stakes in companies like Meta, Novo Nordisk, and ASML.
