While the demand for Bitcoin (BTC) and cryptocurrencies is increasing day by day, governments are also taking swift and significant steps regarding the crypto sector.
At this time, the latest news has come from Kazakhstan.
According to Bloomberg, Kazakhstan is preparing to establish a national cryptocurrency reserve fund worth between $500 million and $1 billion.
The fund’s capital will be raised from assets seized or repatriated by the government from abroad and profits from state-sponsored mining operations.
The fund in question avoids direct exposure to cryptocurrencies, but plans to invest in ETFs and crypto-related companies.
The fund is expected to become operational in early 2026.
Kazakhstan Central Bank Governor Timur Suleymanov told Bloomberg in an interview in London that the fund will not invest directly in Bitcoin or cryptocurrencies, but rather in ETFs and stocks of companies specializing in cryptocurrencies.
“We are very careful about direct exposure to cryptocurrencies.
“I think we will have the fund operational by the end of the year, which is January next year. Everyone is ready.”
As you may recall, Kazakhstan announced plans for a state-controlled cryptocurrency reserve in mid-2024.
Last June, Kazakhstan announced the signing of an important agreement with the Solana (SOL) Foundation. In response, the Foundation announced a partnership with Kazakhstan to establish Central Asia’s first blockchain economic zone. The initiative aims to establish Kazakhstan as a regional blockchain hub, promote Web3 technology and attract global talent.
*This is not investment advice.