Rationale, Policy Design, and Execution for the Next Reserve Paradigm

👉 Read the full report: Integrating Bitcoin into Sovereign Wealth Portfolios

The post-2020 regime has upended the assumptions that built modern sovereign portfolios. Inflation risk, rising debt costs, and reserve seizures have eroded confidence in “inside money” assets dependent on counterparties and policy discretion. The traditional stock-bond hedge is breaking down, and sovereign funds are re-examining what it means to hold truly neutral reserves.

This report outlines a disciplined framework for introducing Bitcoin as digital outside money—a scarce, verifiable, and portable asset that can strengthen sovereign balance sheets without compromising liquidity or governance.

Inside, you’ll find:

• A clear macro rationale for diversification beyond fiat and G7 bonds
• Policy templates for stabilization and savings funds with 1–5% target allocations
• Empirical data showing how small Bitcoin sleeves improve Sharpe ratios and recovery speeds
• Implementation guidance on custody (multi-institution, multi-jurisdiction), execution, and oversight

As several sovereigns begin to experiment—Luxembourg, Abu Dhabi, Norway—this paper provides a roadmap for doing so prudently. A small, governed Bitcoin allocation can enhance resilience, optionality, and long-term real returns in a changing global order.

👉 Read the full report: Integrating Bitcoin into Sovereign Wealth Portfolios