Norway's $40B Wealth Fund Loss Sparks Bitcoin Debate

Norway's sovereign wealth fund, managed by Norges Bank, faced a massive $40 billion loss in Q1 2025 as US tech stocks plummeted. With indirect Bitcoin exposure at $356 million, questions arise about hedging strategies amid economic uncertainty. Despite its indirect ties to Bitcoin through companies with large BTC holdings, the fund's direct Bitcoin investment remains speculative. However, Abu Dhabi's recent Bitcoin ETF investments highlight crypto's role as a hedge, posing intriguing prospects for Norges Bank's future strategies.