ALMATY, Kazakhstan / Eurasian Newswire / – Kazakhstan has invested around $190 million of its National Strategic Crypto Reserve in hedge funds and exchange-traded funds that provide access to digital assets. National Bank Deputy Governor Binur Zhalenov told the state news agency Kazinform that the amount had been invested by the end of October. The interview, published on November 9, described a portfolio being built in stages, with each investment chosen after an assessment of returns and risks.
The reserve was established in December 2025 with a total allocation of $700 million. Zhalenov said it received equal contributions of $350 million each from the central bank’s gold and foreign exchange assets and from Kazakhstan’s National Fund. On those figures, about 27.1% of the reserve has been invested, leaving roughly $510 million outside the reported amount. The reserve is managed by the National Investment Corporation, a subsidiary of the National Bank of Kazakhstan.
A more detailed breakdown came from a Bloomberg report on November 5. Batur Vakhidov, head of the central bank’s monetary operations department, presented the figures at a conference in Almaty. According to the report, about $100 million went into cryptocurrency-focused funds, including Ege DeFi, Brevan Howard Digital and PDO. A further $90 million was invested in cryptocurrencies and Bitcoin-focused ETFs, with no split given between tokens and fund shares.
Hedge fund route planned since January
The fund-based approach was already taking shape in January, when the National Investment Corporation opened an account for crypto-related investments at the Central Securities Depository. At that stage, officials had shortlisted five hedge funds without naming them. National Bank Governor Timur Suleimenov said crypto-focused venture capital funds could receive allocations later. The plans also included using cryptocurrencies seized by law enforcement to help build the reserve over time.
At a briefing on March 6, Suleimenov described a selection process covering technology companies linked to cryptocurrencies, index funds and instruments that track digital assets, Reuters reported. Deputy Chair Aliya Moldabekova said investments were expected to begin in April or May. She said officials were selecting companies involved in digital assets, including crypto infrastructure. The move comes as regulators elsewhere, including the EU, review their crypto rules.
No budget funds for the reserve
In February, the National Bank said there were no plans to use budget funds for the reserve. It named gold and foreign exchange assets, National Fund assets and other state assets authorised by the government as funding sources. The Central Securities Depository was designated for the accounting and storage of digital assets. The mandate covers digital assets, related derivatives and stakes in companies developing or investing in the sector.
The bank will submit an annual report on the reserve’s results to Kazakhstan’s Council for National Fund Management. In September 2025, it said the separate Alem Crypto Fund was not state-owned and had no authority to manage sovereign reserves. Any US-listed holdings may fall under SEC Form 13F rules, which apply to managers with discretion over at least $100 million in covered securities. Gold, a traditional reserve asset, edged up to $4,061 an ounce in late October.