Kazakhstan Plans $1 Billion Crypto Reserve Fund To Invest In ETFs, Not Coins

Kazakhstan is preparing a national digital-asset reserve that could reach between $500 million and $1 billion within the next 14 months, according to officials briefed on the proposal.

First reported by , the plan is to pool confiscated crypto, repatriated offshore assets and revenues from licensed state-backed mining into a single investment vehicle, giving the country a formal place in the crypto market while keeping regulatory control.

The proposed fund will be managed under the Astana International Financial Centre (AIFC), Kazakhstan’s main hub for fintech and blockchain innovation. Officials indicated that the fund will not hold cryptocurrencies like Bitcoin directly.

Instead, it will invest in exchange-traded funds (ETFs) and companies involved in the digital asset ecosystem. This structure reflects Kazakhstan’s cautious but strategic approach to crypto adoption, focusing on regulated investment vehicles rather than direct token exposure.

Besides, the move signals a new phase in the country’s economic diversification plan. Over recent years, Kazakhstan has emerged as a major Bitcoin mining center following China’s mining crackdown.

However, it also faced challenges such as illegal mining operations, energy shortages, and capital flight. Consequently, repurposing seized or repatriated crypto assets into a formal state-backed fund offers both economic and regulatory benefits.

Kazakhstan’s Agency for Financial Monitoring first outlined plans for a crypto reserve in mid-2024. The agency said the goal was to turn confiscated digital assets into a public resource supporting economic sovereignty.

With the latest details, that vision is becoming more tangible. The Bloomberg report revealed that the reserve will be financed through assets recovered from offshore wallets and from income generated by licensed state mining ventures.

Moreover, the government is considering partnerships with foreign investors once the fund is operational.

The structure could resemble a hybrid sovereign wealth model, integrating both domestic and international participation. Such a model would allow Kazakhstan to channel global investment while maintaining oversight through its financial institutions.