Key Takeaways
- • Kazakhstan has invested roughly $190 million of its $700 million National Strategic Crypto Reserve, about 27.1% of the allocation, as of the end of October according to National Bank Deputy Governor Binur Zhalenov.
- • Bloomberg reported about $100 million went into crypto-focused hedge funds and funds including Ege DeFi, Brevan Howard Digital and PDO, with a further $90 million into cryptocurrencies and Bitcoin-focused ETFs without a disclosed split.
- • The National Investment Corporation, wholly owned by the central bank, manages the reserve, which is funded equally by $350 million from gold and foreign exchange assets and $350 million from the National Fund.
- • The reserve's fund-based approach was shaped by due diligence on hedge fund managers, with risk parameters and target returns set before selection, and an annual management report due to the Council for National Fund Management.
Summary
Kazakhstan has deployed approximately $190 million from its $700 million National Strategic Crypto Reserve into hedge funds and exchange-traded funds that provide exposure to digital assets. The figure was given by National Bank Deputy Governor Binur Zhalenov in an interview with Kazinform published November 9, who put the invested amount at roughly $190 million by the end of October and described a portfolio built in stages, with investments chosen after an assessment of potential returns and risks. Using the disclosed totals, the investments represent about 27.1% of the allocation, leaving roughly $510 million outside the reported invested amount.
Bloomberg's November 5 report, cited in Galaxy Research's coverage, provides a more granular breakdown. Monetary operations department head Batur Vakhidov presented the figures at a conference in Almaty, according to the report, which put about $100 million into cryptocurrency-focused funds, including Ege DeFi, Brevan Howard Digital and PDO. A further $90 million went into cryptocurrencies and Bitcoin ETFs, but Bloomberg grouped these together without specifying the allocation between tokens and ETF shares, so the reporting does not establish a purchase exclusively of Bitcoin ETFs.
The reserve was established in December 2025 with equal $350 million contributions from the central bank's gold and foreign exchange assets and the National Fund. In February, the National Bank told Qazinform that no budget funds would be used and that the reserve was managed by the National Investment Corporation, with the Central Securities Depository handling accounting and storage of digital assets. The mandate covers digital assets, related derivatives, and shares or stakes in companies developing or investing in the sector. Potential hedge fund managers were undergoing due diligence, with final selection subject to internal reviews and approvals.
The approach has evolved since January, when officials had shortlisted five hedge funds without naming them and indicated that crypto-focused venture capital funds could receive allocations later. At a March 6 briefing, National Bank Governor Timur Suleimenov described a selection process covering crypto-linked technology companies, index funds and instruments tracking digital assets, as reported by Reuters, and Deputy Chair Aliya Moldabekova said investments were expected to begin in April or May. The bank has also said the National Investment Corporation was chosen for its experience managing alternative investments, and that an annual report on management results will go to Kazakhstan's Council for National Fund Management.
Bloomberg's November 5 report, cited in Galaxy Research's coverage, provides a more granular breakdown. Monetary operations department head Batur Vakhidov presented the figures at a conference in Almaty, according to the report, which put about $100 million into cryptocurrency-focused funds, including Ege DeFi, Brevan Howard Digital and PDO. A further $90 million went into cryptocurrencies and Bitcoin ETFs, but Bloomberg grouped these together without specifying the allocation between tokens and ETF shares, so the reporting does not establish a purchase exclusively of Bitcoin ETFs.
The reserve was established in December 2025 with equal $350 million contributions from the central bank's gold and foreign exchange assets and the National Fund. In February, the National Bank told Qazinform that no budget funds would be used and that the reserve was managed by the National Investment Corporation, with the Central Securities Depository handling accounting and storage of digital assets. The mandate covers digital assets, related derivatives, and shares or stakes in companies developing or investing in the sector. Potential hedge fund managers were undergoing due diligence, with final selection subject to internal reviews and approvals.
The approach has evolved since January, when officials had shortlisted five hedge funds without naming them and indicated that crypto-focused venture capital funds could receive allocations later. At a March 6 briefing, National Bank Governor Timur Suleimenov described a selection process covering crypto-linked technology companies, index funds and instruments tracking digital assets, as reported by Reuters, and Deputy Chair Aliya Moldabekova said investments were expected to begin in April or May. The bank has also said the National Investment Corporation was chosen for its experience managing alternative investments, and that an annual report on management results will go to Kazakhstan's Council for National Fund Management.
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