Potential Investment Range and Funding Source
The National Bank of Kazakhstan (NBK) is reportedly considering an investment in crypto assets, with potential allocations ranging from $50 million to $300 million. According to RBC, NBK Chairman Timur Sülümenov indicated that the institution plans to wait for market stabilization following a significant correction before proceeding. Sülümenov clarified that any such investment would be financed directly from the Central Bank's foreign exchange reserves, distinct from the National Wealth Fund.
Uncertainty in Investment Amount and Risk Reassessment
Sülümenov emphasized that the precise investment amount remains uncertain. He stated, "This doesn't mean we've taken $300 million and are investing it right away. Maybe we'll limit it to 50 million, maybe 100 million, maybe 250 million." The chairman highlighted the necessity of reassessing returns, monetization, and risks after the recent sharp decline across the entire crypto market.
Market Correction and Bitcoin's Performance
The broader crypto market has experienced a substantial downturn, losing approximately $500 billion in total value since the beginning of November. Bitcoin's price has seen a significant drop of 17%, falling from $110,000 to $81,000, marking its lowest point in seven months.
Existing Investment Portfolio and Prudent Approach to New Investments
The NBK Chairman revealed that an investment portfolio linked to high-tech stocks and digital financial instruments has already been established within the Central Bank's reserves. However, he reiterated the bank's intention to avoid hasty decisions regarding new crypto investments. Sülümenov explained, "After this decline in digital and crypto assets, we need to let the dust settle in the market. We will not make any hasty decisions."
Previous Discussions on a National Crypto Fund
Earlier in November, Sülümenov had informed Bloomberg about the country's plans to establish a national crypto fund with a potential value of up to $1 billion. This fund was intended to invest in more traditional and auditable structures, such as exchange-traded funds (ETFs) and shares of crypto-related companies.