Kazakhstan Invests $190 Million of Its $700 Million Strategic Reserve
Key Facts
Kazakhstan’s National Bank had invested about $190 million of its $700 million strategic cryptocurrency reserve by the end of October, reports cited deputy governor Binur Zhalenov as saying. The bank said the funds were placed in hedge funds and exchange-traded funds that provide exposure to digital assets. The amount invested was slightly more than a quarter of the reserve set aside for this purpose. The disclosed details show two routes to exposure: funds focused on cryptocurrencies and exchange-traded funds focused on Bitcoin. The figures do not mean the bank bought digital assets directly or that the entire amount allocated to exchange-traded funds went to Bitcoin.
In details of the allocation cited by the head of the bank’s cash operations department at a conference in Almaty, about $100 million was allocated to funds focused on cryptocurrencies, including Ege DeFi and Brevan Howard Digital. A further $90 million in exchange-traded funds focused on Bitcoin was also announced. The breakdown shows investment in digital asset-related instruments and funds, not a disclosure of direct Bitcoin holdings. Published statements did not specify how the $90 million was divided among the funds or whether all of it was linked to Bitcoin exchange-traded funds. The announcement also did not detail the weight of each fund within the $100 million allocation.
The bank said in February that the reserve could be funded with up to $350 million from its gold and foreign currency assets and up to $350 million from National Fund assets. It said the plan did not involve using budget funds. This structure places the reserve within existing government investment assets, rather than financing it through direct budget spending. Under the announced plan, the National Investment Corporation, a subsidiary of the National Bank, manages the reserve. The Central Securities Depository is responsible for recording and safekeeping the digital assets.
The bank said the reserve’s permitted investment scope includes digital assets and financial derivatives based on them, as well as shares or stakes in companies developing or investing in the sector. The bank said the reserve would become part of Kazakhstan’s total sovereign reserves under its management. By contrast, the bank distinguished the Alem Crypto Fund from the reserve, saying it is not state-owned and is not authorized to manage government reserves. This separation identifies the entity responsible for state assets and prevents confusion between the sovereign reserve and another fund operating in the cryptocurrency sector. The bank also said the results of reserve management would be reported annually to the National Fund’s board.
The investments are part of a broader government drive to regulate digital assets and develop their use. In September, the government said the strategic reserve was worth $700 million and that 34 business projects had passed testing in the National Bank’s regulatory sandbox. That same month, the government approved a joint plan containing 65 measures across 10 areas to develop the digital asset sector. The plan includes identifying assets that can be tokenized and developing digital tools for payments and financing the real economy. A comprehensive legal framework for trading digital assets took effect on 1 May, covering crypto assets and digital financial assets such as stablecoins and tokenized real-world assets.
Deputy Governor Zhalenov said in September that about $200 million of the reserve portfolio, valued at $700 million, had already been invested, Interfax Kazakhstan reported. In July 2025, National Bank Chairman Timur Suleimenov said the bank would not rush to allocate funds to cryptocurrency-related assets, citing their high return potential and high volatility. He added at the time that sovereign wealth fund investments in the area were small, below 1%, and that the bank had not yet made a final decision. The current announcement shows the reserve entering a publicly disclosed investment phase, while the scale and instruments of its allocations remain subject to the management framework set by the bank. The bank did not specify a date for the first annual report, but said the results of reserve management would be reported to the National Fund’s board.