The world's largest investment fund, the Norwegian Government Pension Fund, also known as the “oil fund,” said it has indirect ownership of 577 BTC in its investment portfolio. The information was published by blockchain data analytics company Arcane Research.
This indirect acquisition of bitcoin by the Norwegian fund occurred through participation in MicroStrategy shares. The fund acquired 1.51% of the company in December 2019.
MicroStrategy acquired more than 38,000 bitcoins in 2020. In a statement, the company reported:
"This investment reflects our belief that Bitcoin, as the most widely adopted cryptocurrency in the world, is a reliable store of value and an attractive investment asset with greater potential for long-term appreciation than staying in cash."
The year 2020 seems to be marking the beginning of the entry of traditional investors into the cryptocurrency market. This trend may be closely related to the behavior of Bitcoin in the economic turmoil that markets face throughout the year.
In March, a strong liquidity squeeze flooded the markets, as a result of which, most assets fell significantly in value. In addition to this factor, fear and insecurity caused by the pandemic exacerbated the situation. From the stock market to gold investments, there were significant drops.
Bitcoin, being a relatively small market compared to gold and stocks, has fallen more than 40%. However, Bitcoin's recovery was by far the fastest of all markets. This demonstrated the strength and interest in the entry of new investors.
MicroStrategy shares rose after the announcement of the purchase. This type of investment in Bitcoin can be a great way for institutional investors to enter the market.
The securities of publicly traded companies represent a considerable part of the global financial market. A small entry from large traditional companies could mean a significant increase in the market value of bitcoin.