Norway, home to the world's largest sovereign wealth fund at $1.7 trillion, significantly increased its Bitcoin investments in early Q2 2023.
Norway's Investments in Bitcoin
According to the report, Norges Bank Investment Management (NBIM) raised its Bitcoin investments by 83% in the second quarter. The total Bitcoin-equivalent position rose from 6,200 BTC to 11,400 BTC, with most of the increase attributed to MicroStrategy shares and an additional 200 BTC in Metaplanet.
Analysis and Forecasts
Geoffrey Kendrick, the global head of digital assets at Standard Chartered, noted that Norway is using MicroStrategy shares as a direct means to access Bitcoin. He suggests that an increasing number of sovereign funds and public institutions will also invest in Bitcoin. Kendrick has previously projected Bitcoin to reach $135,000 by September 30 and $200,000 by the end of the year.
Current Market Position
Kendrick also raised his forecasts for other cryptocurrencies, increasing his year-end price target for Ethereum to $7,500. He expects Ethereum could reach $25,000 in 2028, BNB to hit $2,775, and XRP $12.50. According to Kendrick, the total stablecoin market capitalization could approach $2 trillion by the end of 2028.
Norway's increase in Bitcoin investments highlights the growing interest from large public funds in cryptocurrencies, potentially signaling new trends in financial markets.
