Kazakhstan central bank to invest up $350 million in crypto assets

[taufik123]

Doesn't matter, it's still crypto adoption. Not sure why they decided to invest in crypto companies instead of directly investing in crypto, but still this indicates they are crypto-friendly, and definitely it's a positive mindset about crypto. I don't know; due to high volatility, they intend to invest in crypto companies to avoid big losses.
-snip-

Avoiding big losses directly that's what they do, They don't want to take a higher risk because we know crypto has fluctuating price characteristics,
so by investing in crypto companies it's one of the good strategies to take part in the crypto ecosystem indirectly.

 When there is a sharp decline they are still quite safe because everything will be controlled by the crypto company
and of course there will be a guarantee on every big investment deal, especially since $350 million is a very large amount.

The real beginning of adoption started with an interest in crypto but still wanted to experiment indirectly,
wanting to explore how crypto evolved so that they wouldn't miss the trend about crypto.

[davis196]

I find it surprising that a central bank would invest in digital financial assets and stocks. The central banks usually invest in gold or government bonds. Anyway, this news doesn't matter, since there's nothing about investing in Bitcoin directly(by buying actual Bitcoins). I still believe that most central banks around the world wouldn't touch crypto with a 10 foot pole. Central banks hate volatility and prefer stability. Crypto is and it will always be volatile. AFAIK, Kazakhstan used to be one of the most crypto miner friendly countries in the world. I wonder if that didn't change in the past 2 or 3 years.

[m2017]

Definitely bitcoin will be part of the crypto asset that the Kazakhstan governor is taking about. The investment will be from the country's gold and foreign exchange reserves. The investment will begin in April-May of 2026.

Having read up to this point, I was already about to rejoice; at the end of spring, we should expect growth in bitcoin market.

Not that the country will invest in bitcoin and other cryptocurrencies directly but they will invest in:

These include shares of high-tech companies related to cryptocurrencies and digital financial assets, index funds and other instruments that exhibit similar dynamics to crypto assets

But this moment spoiled my expectations.

Although this is not a direct investment but I think this is something good.

What's so good about this? Countries are "sort of" investing in bitcoin, but without actually purchasing the asset. What effect will it have on bitcoin? I think practically none. It would even be weak advertising, since purchasing a BTC-surrogate doesn't mean trusting bitcoin.

Have you noticed that many organizations prefer not to invest in crypto directly? But indirectly like buying crypto company ETFs Why?

I suspect this is due to the risks of safe storage. Remember the recent story of South Korean police losing confiscated bitcoins? Perhaps this is precisely the reason: when purchasing ETFs, responsibility for storage falls on the company, not the buyer. (If the company loses bitcoin, it will still be obligated to pay the buyer bitcoins or equivalent. Of course, the company could go bankrupt, in which case the buyer receives nothing , but it seems that countries investing in bitcoin aren't concerned about this.) Yes, we all understand that this isn't ownership of bitcoin (not your keys), but as you can see, for large investors, this is a preferable solution.