The sovereign wealth fund in Norway lost 40 billion dollars in the first quarter – will it be surrounded by risks by increasing exposure to bitcoin?

Main meals:

• Norges lost 40 billion dollars in the first quarter of 2025 with a decrease in US technology shares, which revealed the risk of concentrated positions.

• The bank’s indirect bitcoin exposure reached 356 million dollars, raising the risk of pressure amid global fears of the trade war and stagnation.

• The 437 million dollar Abu Dhabi stake in Bitcoin Etf shows the sovereign wealth boxes that Bitcoin sees as hedge.

Norges Bank, the sovereign wealth fund of $ 1.7 trillion, had a loss of $ 40 billion in the first quarter of 2025, with most of the decrease caused by a decrease in the value of the technology companies listed in the United States. Norges Bank also Indirectly owned by 3,821 BTC Through the investments of the stock market by the end of 2024, as it provides potential pressure risks for sale on Bitcoin, especially when considering social and political uncertainty and the threat of economic stagnation caused by the World Trade War.

At such times, can Norges Bank increase its investments in bitcoin companies or even buy instant bitcoin exchange boxes (ETFS) as a way to hedge the risk of hedge?

Currently, it seems unlikely to consider the Norway Investment Fund in the purchase of ETF Bitcoin, especially since the fund does not carry any gold. Besides stocks and bonds, Norges Bank invests in real estate, including retail real estate, industrial energy, renewable energy, and logistical services all over the world.

Norway sold all gold in the central bank by early 2004, when gold was trading less than $ 400. Since then, gold has surpassed the S&P 500 by 280 %. The shares are now 71.4 % of the total fund’s investment, so if the World Trade War continues, significant losses may occur.

Norges Bank Investments achieved $ 222 billion in profits in 2024, and its stock market portfolio decreased by only 1.6 % in the first quarter of 2025. The sovereign wealth fund in Norway “is mainly paid”, ” According to To Nicolai Tangen CEO, specifically after the FTSE Global All Cap.

Although this indicator includes more than 7100 shares from both advanced and emerging markets, it depends on the market value, which means that 65 % of exposure is for North American companies. However, according to Norges Bank Trond Grande Vice President, there is some flexibility for active investment, and its exposure to the shares of technology listed in the United States was less than the standard over the past 18 months.

Some of these holdings, such as the strategy, Mara Holdings, Coinbase, and riots, carry large quantities of bitcoin (BTCOn their public budgets. As a result, even if it was not intended, the sovereign wealth fund had an indirect exposure of $ 356 million to Bitcoin at the end of 2024.

The data shows 5 % by Bitcoin again in 2018, which would enhance 56 % standard shares performance.

It seems that the purchase of investment funds circulating in Bitcoin is unlikely, but indirect exposure is still possible

Technically, it appears that it is unlike Bitcoin spot etf Without changing the box’s mandate. However, it appears that increased exposure to companies with large bitcoin holders are possible. However, there is no sign of such a step, although Nikolai Tangin stated on April 24 that the box will increase investments in American stocks.

Related to: China may turn from the American Treasury towards gold and encryption – Blackrock Exec

The fact that Mobala’s investments, which is one of the sovereign wealth funds in Abu Dhabi, holds a $ 437 million stake in ISHARES Bitcoin ETF (IBIT) from Blackrock (Ibit). Likewise, the Wisconsin Province The Investment Board holds $ 321 million in the Instant Bitcoin Investment Funds, which indicates the increasing use of the encrypted currency as a hedge.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.