Norges Bank Investment Management (NBIM), Norway’s sovereign wealth fund giant, has been discreetly increasing its Bitcoin exposure—with a unique twist.

They have strategically increased their indirect holdings by 153% by placing a shrewd wager on MicroStrategy, rather than rushing headfirst into the volatile crypto market.

By the conclusion of 2024, NBIM had acquired approximately $500 million in MicroStrategy, which amounted to more than 1.1 million shares.

Norway is able to pursue the potential advantages of Bitcoin without the discomfort of direct crypto ownership, thanks to this clever strategy.

Betting On Bitcoin—Without Purchasing A Single Coin

The most important point is Norway’s fund does not actively participate in Bitcoin. Instead, they are using MicroStrategy’s significant BTC holdings—akin to investing in a gold rush shovel manufacturer instead of digging for gold alone.

🇳🇴 Norway’s Bold Crypto Move!

💰 $500M Investment: Norway’s sovereign fund acquires 1.123M shares in MicroStrategy

📈 Bitcoin Exposure: Holdings surge 153% in 2024, now at 3,821 BTC

🌍 Global Positioning: Now among the largest institutional Bitcoin holders

🔄 Strategic Shift:… pic.twitter.com/GRKJ3KVadL

— MoneyDubai (@MoneyDubai_ae) January 30, 2025

Maintaining MicroStrategy shares helps NBIM avoid the problems related to cryptocurrencies: no regulatory gray areas, custody issues, or restless nights brought on by market swings.

And it’s paying off; their indirect crypto exposure rose from about 1,506 BTC to 3,821 BTC at year’s end. Not bad for a fund officially free of cryptocurrencies.

Norway’s indirect exposure to Bitcoin has almost tripled over the past year, as a result of increased allocations to crypto-related firms, according to K33 Research.

The Norwegian sovereign wealth fund (NBIM) indirectly holds 3,821 BTC, reflecting an increase of 1,375 BTC since June 30, 2024, and a yearly growth of 2,314 BTC—a 153% increase compared to its end-of-year 2023 holdings.
It is important to highlight that this exposure likely… pic.twitter.com/seQ12cM2Rn

— Vetle Lunde (@VetleLunde) January 29, 2025

What’s The Rationale Behind MicroStrategy?

Therefore, why do they align themselves with this organization? MicroStrategy has emerged as the embodiment of the corporate Bitcoin craze. Their stock has become a Bitcoin barometer as a result of their aggressive purchasing spree; as BTC increases, so does their share price.

BTCUSD trading at $104,103 on the daily chart: TradingView.com

This implies that Norway’s fund can capitalize on Bitcoin’s potential without experiencing the cryptocurrency market’s volatility. It’s a win-win situation: maintain the stability of conventional investments while gaining a glimpse of the untamed side of crypto through a reputable intermediary.

NBIM's MicroStrategy investment value. Chart: NBIM

Big Money’s Crypto Playbook

This is not solely a Norwegian anomaly; it is a component of a more extensive trend. Institutional investors are gradually becoming more favorable toward cryptocurrency; however, they remain cautious regarding their own possession of digital currencies. Rather, they are employing their imagination. They are entering the crypto waters without entirely immersing themselves by supporting companies such as MicroStrategy.

Eggs In Other Baskets

Apart from MicroStrategy, Norges Bank Investment Management also owns stock in multiple companies that deal with Bitcoin. These include Tokyo-based Metaplanet, cryptocurrency exchange Coinbase, Bitcoin mining companies Marathon Digital and Riot Platforms, and Tesla.

Featured image from Gemini Imagen, chart from TradingView

Hedge fund giant Elliott Management has warned that the White House’s pro-crypto stance fuels an unsustainable market bubble that could cause severe financial disruption when it collapses.

The concern comes amid Donald Trump’s pro-crypto stance, which contributed heavily to his re-election as US President.

Elliott Says Crypto is “Ground Zero” for Speculative Frenzy

The Financial Times reported the hedge funds’ warning, citing a letter to investors. Per the report, Elliott cautioned that the speculative mania surrounding digital assets, as amplified by political support, represents a looming financial risk with unpredictable consequences.

The $70 billion hedge fund, founded by billionaire Paul Singer, criticized the US government’s increasing alignment with cryptocurrencies. Specifically, Elliot argued that such assets lack fundamental value yet have surged due to perceived proximity to the White House.

Against this backdrop, the firm warned that embracing digital assets that could marginalize the US dollar. In their opinion, the global reserve currency is a dangerous policy direction.

According to the investor letter, Elliott has “never seen a market like this.” The firm pointed to the AI-driven stock rally and soaring cryptocurrency prices as evidence that investors are behaving irrationally. It singled out crypto as the epicenter of the speculative surge, describing it as assets with “no substance.”

The hedge fund believes that the crypto industry has grown to dangerous levels due to White House endorsement.

“Crypto is ground zero…could wreak havoc in ways we cannot yet anticipate,” the report stated, citing Elliot.

Elliott’s criticism is notable given Singer’s political connections. Despite being a longtime Republican donor and contributing $56 million to conservative candidates in the 2024 election cycle, Singer has frequently voiced skepticism about cryptocurrencies.

His hedge fund now argues that political support for digital assets, particularly under the Trump administration, has exacerbated reckless speculation.

Beyond policymaking, Trump’s personal and business dealings have deepened his ties to the crypto sector. Alongside his sons and business associates, Trump backed World Liberty Financial (WLFI), a cryptocurrency platform launched last year.

He and the First Lady have also introduced meme coins, TRUMP and MELANIA, respectively, presenting a speculative class of cryptocurrencies with no inherent value. Similarly, Trump Media, where the former president holds a majority stake, also announced plans to invest up to $250 million in crypto. These actions, Elliott warns, have further legitimized speculative behavior in the market.

Additionally, pro-crypto lobbying has surged, with the Fairshake PAC spending $173 million in the 2023-2024 election cycle to support crypto-friendly candidates. The advocacy group has a $116 million war chest for the 2026 midterms.

Tether, the world’s leading stablecoin issuer, has announced the integration of USDT into Bitcoin’s ecosystem, including its base layer and the Lightning Network.

By leveraging Bitcoin’s unmatched security with Lightning’s efficiency, Tether aims to redefine how stablecoins function within the cryptocurrency ecosystem.

Tether Enhances Bitcoin’s Financial Ecosystem

The move is expected to revolutionize stablecoin usage within the Bitcoin ecosystem, enabling seamless, high-speed, and low-cost transactions. With over 350 million users worldwide, USDT’s adoption of the Lightning Network will provide developers and users with the reliability of Bitcoin. It will also deliver the efficiency of Lightning-enabled payments.

“Bringing USDT to Bitcoin combines the security and decentralization of Bitcoin with the speed and scalability of Lightning. Millions of people will now be able to use the most open, secure blockchain to send dollars globally. It all comes back to Bitcoin,” said Elizabeth Stark, CEO of Lightning Labs, in a statement shared with BeInCrypto.

It comes amid the growing demand for Bitcoin among institutional and retail investors. The integration of USDT further cements the pioneer crypto’s role in global financial systems.

The integration is powered by the Taproot Assets protocol, developed by Lightning Labs. This protocol leverages Bitcoin’s security and decentralization while enhancing transaction speed and scalability.

As the Taproot Assets protocol expands Bitcoin’s functionality, tokenized assets such as USDT can operate without compromising the blockchain’s decentralized nature. The integration will unlock new financial applications, including micro-transactions, remittances, and efficient cross-border settlements.

“Tether is committed to driving innovation in the Bitcoin ecosystem. By enabling USDT on the Lightning Network, we are reinforcing Bitcoin’s foundational principles of decentralization and security while offering practical solutions for remittances and payments that demand speed and reliability,” the statement added, citing Tether CEO Paolo Ardoino.

Tether Extends Reach Despite Regulatory Challenges

It comes barely a week after Tether revealed plans to launch a blockchain academy in Vietnam. Two weeks ago, Tether also facilitated upgrading and handing the Bridged USDT on Arbitrum to the USDT0 standard. BeInCrypto reported that this upgrade ensures seamless interoperability while maintaining a 1:1 backing on Ethereum.

According to USDT0, Arbitrum currently leads all Layer-2 networks in stablecoin adoption. Over 1.3 billion USDT was minted under the new standard.

“With over 1.3 billion USDT minted, Arbitrum leads all L2s in stablecoin adoption. Starting today, USDT on Arbitrum is upgraded to the USDT0 standard,” USDT0 shared on X.

Despite these technological advancements, Tether faces regulatory hurdles. In Europe, the MiCA (Markets in Crypto-Assets) framework is particularly set to impose stricter controls on stablecoins. In anticipation of MiCA’s rollout, several EU-based exchanges have already delisted USDT, causing liquidity and market stability concerns.

However, some experts believe MiCA’s impact on Tether will be minimal. This stance is based on the fact that the majority of USDT’s trading volume originates from Asia.

“…80% of USDT’s trading volume comes from Asia, so the EU delisting won’t have any severe impact. This is evident from USDT’s market cap, which is down by only 1.2%,” claimed Axel Bitblaze.

Regarding regulations, Tether has secured a major license in El Salvador, leading to its relocation to the country. This move aligns with El Salvador’s pro-Bitcoin stance and further strengthens Tether’s position in a jurisdiction that embraces digital assets.

Meanwhile, regulatory uncertainty continues to loom over Tether in the United States. Brian Armstrong, CEO of Coinbase, has stated that if new legislation requires it, the exchange would consider delisting USDT. This reflects the broader regulatory pressures that stablecoin issuers face, particularly in the US market.