Norway’s sovereign wealth fund lost $40B in Q1— Will it hedge risk by increasing Bitcoin exposure?

Key Takeaways:

• The Norges Bank lost $ 40 billion in Q1 2025 as US tech stocks fell, revealing the risk of concentrated positions.

• The bank's indirect exposure to the bank by stocks reached $ 356 million, increasing the pressure risk amid a global trade war and retreating.

• Abu Dhabi's $ 437 million spot shows wealthy wealth funds that see Bitcoin as a fence.

The Norges Bank, the $ 1.7 trillion of Norway's highest wealth fund, reported a $ 40 billion loss in the first quarter of 2025, with most of the denial caused by a collapse in the value of technology-listed companies. The Norges Bank also does not directly belong to 3,821 BTC through investments in its stock market at the end of 2024, presenting a potential selling pressure of pressure on bitcoin, especially considering socio-political uncertainty and the risk of an economic contraction caused by the global warfare.

At these times, the Norges Bank can increase its investments in Bitcoin -related companies or even buy funds exchanged by Bitcoin (ETF) exchanges as a way to risk risk?

So far, it seems unlikely that Norway's investment fund will consider the purchase of a Bitcoin ETF, especially since the fund does not hold any gold. Aside from stocks and bonds, Norges Bank invests in real estate, including retail, industrial, changeable energy, and logistics properties worldwide.

Norway sold all the gold of the Central Bank in early 2004, when the gold was trading below $ 400. Since then, the gold has released the S&P 500 by 280%. Equal ones now make up 71.4% of the total investment of the fund, so if the global trade war continues, significant losses may occur.

The Norges Bank Investments formed $ 222 billion in revenue in 2024, and its stock market portfolio dropped only 1.6% in the first quarter of 2025. According to In CEO Nicolai Tangen, specifically following the FTSE Global All Cap Index.

Although this index includes more than 7,100 stocks from both developed and emerging markets, it is based on market capitalization, which means 65% of exposure is in North American companies. But, according to Norges Bank Deputy CEO Trond Grande, there is some flexibility for active investment, and their exposure to stocks listed in the US has been under the benchmark for the past 18 months.

Some of these handling, such as approach, Mara Holdings, Coinbase, and Riot platforms, hold a huge amount of Bitcoin (BTC) on their balance sheets. As a result, even incidentally, the sovereign wealth fund has $ 356 million indirect exposure to Bitcoin by the end of 2024.

The data shows a 5% hypothetical allocation in Bitcoin back in 2018 will boost the funding benchmark performance of 56%.

Buying bitcoin ETFs seems unlikely, but indirect exposure remains possible

Technically, it seems unlikely that the Norges Bank can buy the Bitcoin ETF area without changing the fund order. However, increasing exposure to companies with significant handling in bitcoin appears to be possible. However, there is no sign of such a move, though Nicolai Tangen said on April 24 that the fund will increase investments in US stocks.

Related: China can move from US Treasurys to gold, crypto – Blackrock Exec

The fact that the Mubalad investments, one of Abu Dhabi's highest wealth funds, held a $ 437 million stake in Blackrock's Ishhares Bitcoin ETF (IBIT) helps develop a case for such investment. Similarly, the state of the Wisconsin Investment Board will be held by $ 321 million in Bitcoin ETF areas, which shows the growing use of cryptocurrency as a fence.

This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.