Instead, the lesson here is that portfolio diversification is important, and AI is not the only way to make money in the stock market. Indeed, Wall Street experts think Bitcoin could surge as much as 77,675% in the coming decades, which implies identical gains in the iShares Bitcoin Trust. The United States is the largest governmental holder of bitcoin, with more than 212,000 BTC, primarily acquired through seizures related to criminal activity. The UK government holds around $3.5 billion worth of bitcoin, also mostly from confiscations. The fund has a global investment portfolio, which includes stakes in thousands of companies across various sectors.

Finally, the growth in the fund’s bitcoin holdings raises questions about the future of the digital asset in institutional portfolios. While the current exposure represents a small fraction of the fund’s total assets, it could signal the beginning of a broader trend. Norway’s substantial investment in Bitcoin through its sovereign wealth fund illustrates a notable trend among global financial institutions towards embracing digital assets. As other countries explore similar avenues, Bitcoin’s role in the financial ecosystem seems poised for further growth and integration. These strategic investments not only boost national portfolios but also signal a broader shift towards digital finance, paving the way for future economic landscapes.

During the same time, the sovereign wealth fund also upped its exposure to Coinbase from 0.49% to 0.83%, while also increasing its allocation to Block Inc. from 1.09% to 1.28%. First, not even the smartest Wall Street analyst knows the future, so forecasts are simply educated guesses. There is no guarantee Bitcoin comes anywhere close to the price targets I’ve discussed.

Software firm MicroStrategy is currently one of the world’s largest single Bitcoin holders under the leadership of its chair Michael Saylor.

Should this happen, cryptocurrencies could further be legitimized as standard asset classes and potentially see an increase in capital inflows. The increasing mainstream adoption of cryptocurrencies has contributed to reducing the perceived risks. This has made cryptocurrencies a more accessible investment vehicle for large institutional players like Norway’s sovereign wealth fund.

Its strategyreturned taxpayersthere a 55% profit whenBitcoin price surged this year. Despite the positive developments in institutional adoption and user engagement, Bitcoin’s price is below the psychologically important $60,000 mark. This growth in non-zero addresses is particularly significant Bitcoin news as it suggests a broadening base of Bitcoin holders. The fund reduced its stakes in Meta and other tech giants, instead funneling capital into promising Web3 stocks. Key beneficiaries of this shift include industry leaders such as MicroStrategy, Coinbase, Block, and Marathon Digital. Timely, reliable coverage of breaking news, insights, and analyses on Bitcoin and cryptocurrencies since 2018.

BTCO is waiving its official 0.25% fee to zero for the first six months on the first $5 billion in assets. With 100% of assets invested directly in bitcoin and a big iShares brand behind it, IBIT is a major player in the space. It is also likely to survive any consolidation that strikes the crowded field of digital asset ETFs in the months and years ahead. After years of anticipation, the Securities and Exchange Commission finally opened the door to 11 spot bitcoin ETFs in 2024. It remains well over 10 times bigger than the largest of the newcomer spot bitcoin ETFs.

Norway’s increased crypto holdings are not a result of the government wanting to safeguard itself from the risks and open itself to opportunities in the evolving global financial scene. Instead, the sovereign wealth fund’s trading news growing exposure to cryptocurrencies, particularly Bitcoin, appears to be an unintentional consequence of its broader investment strategy. The fund now has more investment in cryptocurrencies because of its investments in companies that hold significant Bitcoin assets or are involved in the crypto space. Despite not investing directly in Bitcoin, Norway’s sovereign wealth fund is one of the most influential institutional investors globally. The fund’s actions might inspire major institutional investors to consider acquiring stocks in companies that hold Bitcoin to gain indirect exposure to its benefits.

You must do research before buying a bitcoin ETF, so you fully understand how it is structured. But ETFs that invest indirectly in bitcoin—such as ETFs that hold bitcoin futures—are not inferior. They are simply alternative strategies, looking to gain exposure to bitcoin in a different way.

The country has a sovereign wealth fund worth more than $1.7 trillion (£1.3tn), built up from the proceeds of its oilfields, to act as a “pension fund” for when it runs out. The largest of the new funds, BlackRock’s IBIT, has amassed $17 billion in assets under management in the three months since its debut, recently notching a 71-day inflow streak. The fund now holds the equivalent of 2,446 BTC through strategic investments in crypto-exposed tech firms. This Bitcoin-related portfolio, valued at an impressive $143 million, has seen a notable growth of 938 BTC since the close of 2023.

To help you understand this new corner of the ETF universe, Forbes Advisor has reviewed the pure-play bitcoin ETFs currently available for trading in the United States. Others offer indirect exposure to this popular digital asset through bitcoin futures. The increase in Norway’s sovereign wealth fund’s bitcoin exposure comes at a time when the digital asset itself has been experiencing significant price fluctuations. Second, the fund’s increased bitcoin exposure underscores the importance of diversification in investment strategies. By investing in a wide range of companies across different sectors, the fund has inadvertently increased its exposure to bitcoin.

However, the approval of spot Ethereum ETFs still appears far off at this point. GBTC built its infrastructure well in advance of the recent SEC ruling as it bet big in anticipation of getting over this final regulatory hurdle. Although large and liquid, however, the elevated fee structure for this bitcoin ETF at present may give some investors cause to shop around. As of July 25, 2024, Saylor owned 1,961,668 shares of MicroStrategy class B stock and had sold all of his class A stock. Despite his 52.9% control of voting power thanks to class B voting preference, Saylor owns far less in equity — just 10% of the combined classes. In El Salvador, where Bitcoin is legal tender, President Nayib Bukele has bought up on-chain Bitcoin since 2021.

Specifically, it is a constituent of the MSCI All Country World Index, Russell 2000 Index, S&P 600 Small Cap, S&P 600 Information tnorwegian-btc.fund Technology, and the MSCI ACWI IMI Fintech ESG Filtered Index. Recent analysis from AMBCrypto highlights that Bitcoin has encountered some downward pressure over the past 24 hours. At the time of this report, BTC is trading at approximately $58,000, reflecting a marginal decline of 0.5%.