Norway’s $1.7 trillion sovereign wealth fund, Norges Bank, reported a $40 billion loss in the first quarter of 2025, primarily due to declines in US tech stocks. This highlights the risks associated with concentrated positions. Despite a $356 million indirect exposure to Bitcoin through stocks, the fund has been cautious regarding direct investment in Bitcoin, especially since it sold all its gold holdings back in 2004. CEO Nicolai Tangen noted that the fund mostly follows index strategies, heavily weighted towards North American equities. While there is some flexibility for active investments, past allocations have seen exposure to companies holding Bitcoin, leading to indirect involvement in the cryptocurrency market. Although increasing direct Bitcoin investments seems unlikely at this juncture, the situation raises questions about the future strategy of the fund amid global economic uncertainties.

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