Kazakhstan is establishing a billion-dollar cryptocurrency fund.

The government of Kazakhstan is preparing to establish a national cryptocurrency reserve fund worth 500 million to 1 billion dollars, which will be financed by assets confiscated or brought back from abroad. According to a report by Bloomberg, this fund will not plan to invest directly in cryptocurrencies; rather, it will target investment vehicles such as companies connected to cryptocurrencies and exchange-traded funds (ETFs).

The fund is expected to become operational at the beginning of 2026. In recent years, Kazakhstan has been pursuing an active policy in both cryptocurrency mining and digital finance regulations. The country has become one of the largest Bitcoin mining centers in the world, particularly due to the influx of miners migrating from China. The aim of the new fund is to evaluate the economic potential offered by the crypto ecosystem in a more institutional and regulated manner.

The fund will adopt an “indirect” approach in terms of investment strategy. That is, it aims to avoid price volatility by not investing directly in assets such as Bitcoin or Ethereum. Instead, it will allocate capital to companies focused on cryptocurrency technology and ETFs that invest in the crypto industry. With this method, the government will be able to benefit from the growth of the crypto economy while adopting a less risky stance.

This move is seen as a new indicator of Kazakhstan's strategy to accept cryptocurrency as a tool for economic growth rather than banning it. The fund is expected to attract the attention of international investors and contribute to regional digital finance center goals. Investors should closely monitor these developments in Kazakhstan and stay informed about potential investment opportunities.