What we will talk about today...

World’s Largest Sovereign Wealth Fund’s Bitcoin Exposure Not ‘Intentional’

Norway's sovereign wealth fund's significant Bitcoin exposure, valued at $144 million, appears unintentional, likely due to algorithmic sector weighting rather than a deliberate strategy.

• Main Points:

  • Unintentional Exposure: Analyst suggests Bitcoin exposure is due to algorithmic sector weighting.

  • Indirect Holdings: The Fund’s Bitcoin exposure has grown by 160.7% since December 2023.

  • Portfolio Expansion: Increased stakes in MicroStrategy, Coinbase, Block, and Marathon Digital.

  • Per Capita Impact: Each Norwegian indirectly owns $27 worth of Bitcoin.

  • Global Trend: Other global funds, like South Korea's NPS, are also increasing crypto exposure.

• Detailed Insights:

  • Unintentional Exposure: K33 Research senior analyst Vetle Lunde suggests that Norway's Government Pension Fund's increased Bitcoin exposure, now valued at $144.8 million, likely stems from algorithmic sector weighting and diversification strategies rather than a deliberate decision to accumulate Bitcoin.

  • Indirect Holdings: The fund's Bitcoin holdings grew by 160.7% since December 2023, mainly through expanded investments in companies with Bitcoin on their balance sheets, such as MicroStrategy.

  • Portfolio Expansion: The fund increased its stakes in Michael Saylor’s MicroStrategy, cryptocurrency exchange Coinbase, and Jack Dorsey’s fintech firm Block, and also started a new investment in Bitcoin mining company Marathon Digital.

  • Per Capita Impact: As a result, each Norwegian citizen indirectly holds $27 worth of Bitcoin, illustrating how Bitcoin is becoming part of diversified portfolios globally.

  • Global Trend: The trend of increasing crypto exposure is not limited to Norway. South Korea’s National Pension Service, the world’s third-largest public pension fund, recently bought nearly $34 million worth of MicroStrategy shares, further signaling growing institutional interest in Bitcoin.

Related: BRICS Crypto Threat to US Dollar

Why Is Solana (SOL) Price Down Today?

Solana (SOL) dropped 15% over the past week, driven by declining memecoin activity, reduced on-chain transactions, and a decreasing total value locked (TVL).

• Main Points:

  • Price Drop: SOL falls 15% over the last week, reaching $138.22 on Aug. 16.

  • Memecoin Decline: Solana-based meme-coins see double-digit losses, impacting SOL.

  • On-Chain Activity: Daily transactions and revenue on Solana’s network drop sharply.

  • TVL Decrease: Solana’s total value locked (TVL) dropped by 5.2% in a week.

  • Bearish Market Structure: SOL risks a further decline to $122 if current support levels break.

• Detailed Insights:

  • Price Drop: Solana's price has fallen over 15% in the past week, closing at $138.22 on August 16. The price action reflects a broader weakness in the crypto market.

  • Memecoin Decline: The decline in Solana's price is partly due to falling prices of Solana-based memecoins like Dogwifhat (WIF), Bonk (BONK), and others, which have seen losses of up to 23% in the past 24 hours.

  • On-Chain Activity: Solana’s on-chain activity has plummeted, with daily transactions dropping from 20,465 to 4,332 between August 13 and 16, leading to decreased network revenue.

  • TVL Decrease: According to DefiLlama, Solana’s total value locked (TVL) has decreased by 5.2% over the last week, reflecting reduced trader interest and decreased use of the network’s layer 2 protocols.

  • Bearish Market Structure: Solana's market structure suggests a potential retest of the $122 support level if the price breaks below the current support at $135. The $150-$155 zone remains a key resistance area.

Related: Bitcoin Consolidation Continues

BlackRock Edges Closer to Surpassing Grayscale in On-Chain Crypto Assets

BlackRock is rapidly closing in on Grayscale as the largest holder of on-chain crypto assets, with its portfolio nearing $21.02 billion.

• Main Points:

  • BlackRock’s Growth: BlackRock's on-chain assets are approaching Grayscale’s $21.33 billion holdings.

  • Grayscale’s Current Lead: Grayscale maintains a slight advantage, primarily due to its GDLC fund.

  • Bitcoin Holdings: BlackRock now holds 347,440 BTC, surpassing Grayscale in Bitcoin assets.

  • ETF Inflows: BlackRock’s IBIT and ETHA funds see strong inflows, while Grayscale faces outflows.

  • Future Outlook: If trends continue, BlackRock is set to overtake Grayscale as the top digital asset manager.

• Detailed Insights:

  • BlackRock’s Growth: According to Arkham Intelligence, BlackRock's on-chain digital assets are now valued at $21.02 billion, just shy of Grayscale's $21.33 billion. This rapid growth suggests that BlackRock could soon surpass Grayscale as the largest holder of on-chain crypto assets.

  • Grayscale’s Current Lead: Grayscale's current lead is largely attributed to its GDLC fund. As of Friday, Grayscale's holdings include 264,921 BTC and 2.292 million ETH, maintaining a slight edge over BlackRock.

  • Bitcoin Holdings: BlackRock has already overtaken Grayscale in Bitcoin holdings, with 347,440 BTC in its portfolio, compared to Grayscale’s 264,921 BTC.

  • ETF Inflows: BlackRock’s success is driven by strong inflows into its IBIT and ETHA funds, while Grayscale has seen significant outflows. For example, Grayscale’s GBTC fund experienced a record outflow of $19.57 billion, while BlackRock's IBIT fund attracted $20.37 billion in positive inflows since January 2024.

  • Future Outlook: With BlackRock's continued momentum and Grayscale's recent declines, BlackRock is on track to surpass Grayscale’s total on-chain assets soon, marking a significant shift in the digital asset management landscape.

Related: Microstrategy Joins MSCI World Index Amid Bitcoin Rally

CAN YOU PREDICT THE PRICE?

HOW DID WE DO? 🤷

Stay Tuned For More Twists and Turns in
🚀The Crypto World & Happy Investing🚀

This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results