Norway’s sovereign wealth fund lost $40B in Q1— Will it hedge risk by increasing Bitcoin exposure?
Norges Bank reported a $40 billion loss in Q1 2025, primarily due to declines in US-listed technology stocks. By the end of 2024, the fund had indirect exposure to 3,821 BTC through stock investments, raising concerns about potential sell pressure on Bitcoin amid economic uncertainties. Norges Bank is unlikely to invest in Bitcoin ETFs, as it does not hold gold and primarily focuses on equities, which constitute 71.4% of its portfolio. The fund generated $222 billion in profits in 2024, with a minimal 1.6% drop in its stock market portfolio in early 2025. Although the fund follows the FTSE Global All Cap Index, it has maintained lower exposure to US tech stocks. Indirect Bitcoin exposure exists through holdings in companies like Coinbase and Riot Platforms. While increasing investments in Bitcoin-related companies is possible, no such plans have been announced. Other sovereign funds have invested in Bitcoin ETFs, indicating a trend towards cryptocurrency as a hedge.
