Keep in mind, however, that BITO is an actively managed fund linked to bitcoin futures contracts. Those financial products derive their value from the potential future prices of an asset—not the current or “spot” price. But the cryptocurrency is somewhat atypical because its supply is limited to 21 million coins, so demand is the most consequential variable. They eliminate traditional sources of friction, like maintaining separate accounts for stocks and cryptocurrencies, and paying high fees for each transaction.
Norges Bank Investment Management fund, which reinvests income from the country’s oil reserves, appears to have significantly upped its indirect exposure to Bitcoin this year. Every investment comes with risks, and cryptocurrencies such as bitcoin have proven to be extremely volatile. It’s always a good idea to check with a financial advisor before making any investment decision. Many people choose to invest for retirement in an individual retirement account, otherwise known as an IRA, or in a 401(k) plan. If a retirement investor would like to get a modest amount of exposure to bitcoin without opening an account at a crypto exchange or a bitcoin IRA, owning shares of a bitcoin ETF is a reasonable alternative.
The number of non-zero Bitcoin addresses has seen a notable uptick, rising from approximately 53 million to 54 million in recent days. Leading the pack in this Bitcoin news trend is the United States, with holdings exceeding 212,000 BTC. This translates to an astounding 471,000 BTC, highlighting the growing institutional interest in cryptocurrency. The Bitcoin news from Norway is just the tip of the iceberg in terms of governmental cryptocurrency involvement. In the U.S., Senator Cynthia Lummis has proposed creating a strategic Bitcoin reserve. Similarly, El Salvador’s adoption of Bitcoin as legal tender under President Nayib Bukele has shown profitable outcomes, reflecting an increasing acceptance of Bitcoin at the national level.
Second, the periodic halving events that limit Bitcoin’s supply will gradually reduce selling pressure from miners. In addition to MicroStrategy, the fund also increased its investments in other companies with significant bitcoin exposure. This represents a significant increase from the fund’s bitcoin holdings at the end of 2023, which stood at 1,507 BTC. Norway’s sovereign wealth fund, officially known as the Government Pension Fund of Norway (NBIM), is a financial powerhouse with assets under management totaling approximately $1.7 trillion.
In a bold move that’s making waves in Bitcoin news circles, Norway’s public fund has strategically reallocated its investments. Miners are rewarded with block subsidies (newly minted Bitcoin) when they successfully verify a transaction block, but the payout is reduced by 50% every time 210,000 blocks are added to the blockchain. Bitcoin’s price soared 133% during the past year due to enthusiasm about spot Bitcoin ETFs and the halving event that took place in April. Bitcoin currently trades at $63,000, but the Wall Street pundits below expect that figure to increase substantially. Those trades are especially noteworthy because Point72, Millennium, Citadel, and D.E.
According to the June 30 filings, Norway had invested $217 million in MicroStrategy, giving it 0.89% ownership and 0.45% voting rights. Although significant, its holdings are far subordinate to Saylor’s equity position and 52.9% personal voting power. AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions. This price action, juxtaposed against the backdrop of increasing adoption and institutional interest, presents an intriguing narrative in current Bitcoin news.
Lunde suggests that if the fund had intentionally aimed to increase its bitcoin exposure, there would be more evidence of direct investment initiatives targeting Bitcoin specifically. Additionally, this move has proven how crucial financial education and digital literacy have become, with digital assets being integrated even more into personal and national financial strategies. This has made understanding blockchain technologies and cryptocurrencies important. http://tnorwegian-btc.fund/ Norway’s move might also drive more debates into how countries and their citizens can engage with and benefit from this new financial landscape.
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That explains why the total net assets are tiny for ProShares Short Bitcoin ETF and why its performance has been abysmal. A “short” ETF is a risky long-term bet amid inflationary pressures that raise many assets’ prices. In the case of an asset like bitcoin, which has been on a tear, ETFs that are set up to profit from the digital currency’s decline have been painfully punished. Bitwise is one of the lesser-known sponsors on this list, but its Bitwise Bitcoin ETF has some features that make it noteworthy. For starters, it’s listed on the New York Stock Exchange’s NYSE Arca platform, which means it is trading on a premier platform for exchange-traded funds.
The Norwegian sovereign wealth fund (NBIM) indirectly owns 2,446 BTC, an increase of 938 BTC from December 31, 2023. Every investor is in a unique position with their own unique investment goals and needs. The best bitcoin ETF for each investor can only be determined through research geared to your unique needs and circumstances. The approval of bitcoin ETFs has opened up the world of cryptocurrency investing to many investors who otherwise may not have had an appetite for it. For example, investing in a spot bitcoin ETF, as opposed to owning cryptocurrency outright, may seem more secure or approachable to investors. ProShares Bitcoin Strategy ETF was a first-mover in this space and continues to be the leader among bitcoin futures ETFs.
The increase in Norway’s bitcoin exposure, whether intentional or not, is significant for several reasons. This massive fund was established to reinvest the country’s considerable oil revenues for the benefit of its citizens. With a population of 5.5 million, this translates to nearly $310,000 in assets per Norwegian resident.
This equates to almost $54 per citizen, highlighting El Salvador’s unique commitment to integrating bitcoin into its economy. One of the most notable examples is MicroStrategy, a software firm led by Michael Saylor, which is one of the world’s largest single holders of bitcoin. El Salvador, meanwhile, has implemented a policy of intentionally building up a reserve of Bitcoin.
Specifically, the fund’s stake in Marathon Digital grew from 0% to 0.82%, its investment in Coinbase increased from 0.49% to 0.83%, and its holdings in Block Inc. rose from 1.09% to 1.28%. Norway’s $1.7 trillion sovereign wealth fund has made a bold start to the year, growing by double digits, shedding its exposure to tech giants, and diving deeper into the crypto space. Get Forbes Advisor’s expert insights on investing in a variety of financial instruments, from stocks and bonds to cryptocurrencies and more. When choosing a bitcoin ETF, investors should take into account their personal financial goals, investing timeline and risk profile. Some investors may feel safer getting exposure to bitcoin bots reviews in their portfolios by purchasing a professionally managed ETF than they do owning actual BTC. If the SEC just recently gave approval to funds to operate as spot bitcoin ETFs, how is it that Grayscale Bitcoin Trust has been up and running since 2013?
According to a report by Coingecko, governments globally now hold approximately 2.2% of the total bitcoin supply, which equates to around 462,000 BTC. Since Norway has approximately 5.5 million citizens, every Norwegian indirectly owns a $27 stake in this token. It is important to understand that the Norwegian population does not have direct ownership of Bitcoin, but rather an indirect exposure due to the fund’s investment in crypto-related businesses. The average Norwegian “owns” $27 worth of Bitcoin indirectly as of the first half 2024, thanks to investments made by the country’s sovereign wealth fund.
As Norway sharply increases its Bitcoin holdings, this move underscores the cryptocurrency’s growing legitimacy as a formidable financial asset. Nicolai Tangen of NBIM pointed out that the impressive returns from technology and Bitcoin stocks were crucial to the fund’s performance in the first half of the year. One of the key questions surrounding the Norwegian sovereign wealth fund’s increased bitcoin exposure is whether it was a deliberate decision. On a per capita basis, this means that every Norwegian citizen indirectly “owns” about $27 worth of bitcoin through the fund’s investments.