Central banks buying Bitcoin through offshore funds is a topic of growing interest and speculation, but concrete evidence remains limited and nuanced. Some governments and central banks are exploring Bitcoin as a strategic reserve asset, often starting with seized or confiscated cryptocurrency rather than direct purchases through offshore funds. For example, Taiwan has moved closer to integrating Bitcoin into its treasury operations by studying Bitcoin as a strategic reserve and piloting treasury exposure using government-seized coins. Taiwan’s Financial Supervisory Commission has authorized professional investors to purchase foreign Bitcoin and cryptocurrency exchange-traded funds (ETFs) in 2024, signaling a cautious but deliberate approach to Bitcoin adoption at the government level. However, this process involves feasibility studies and pilot programs to test operational procedures and risk management before any broader adoption or direct purchases are made[1][2].
Internationally, some countries have taken steps toward sovereign Bitcoin reserves. The United States, under President Donald Trump in 2025, established a Strategic Bitcoin Reserve by absorbing approximately $17 billion in forfeited cryptocurrency. Similarly, El Salvador and Argentina have integrated Bitcoin into their fiscal frameworks, motivated by factors such as inflation protection and banking system instability[2]. These examples show that while some central banks and governments are engaging with Bitcoin, it is often through controlled, transparent means rather than covert offshore fund purchases.
Regarding offshore funds specifically, institutional investors and asset managers have launched offshore Bitcoin investment products to meet growing demand. For instance, Coinbase Asset Management launched an offshore Bitcoin Yield Fund for non-US investors, addressing institutional demand for Bitcoin yield products outside the United States. This fund is designed for professional and institutional investors rather than central banks directly, but it illustrates how offshore vehicles are used to facilitate Bitcoin investment by large entities[3].
Central banks traditionally hold reserves in highly liquid and stable assets such as government bonds and foreign currencies. The adoption of Bitcoin as a reserve asset is still experimental and controversial due to Bitcoin’s price volatility, regulatory uncertainties, and operational risks. Central banks are also cautious about the implications of digital assets on monetary policy and financial stability. For example, the introduction of Central Bank Digital Currencies (CBDCs) is a separate but related development where central banks issue their own digital currencies rather than buying decentralized cryptocurrencies like Bitcoin. CBDCs are designed to maintain control over monetary policy and financial stability, whereas Bitcoin’s decentralized nature poses challenges for central banks[5].
In summary, while some central banks and governments are exploring Bitcoin integration, including pilot programs using seized coins and authorizing professional investors to buy Bitcoin ETFs offshore, there is no clear evidence that central banks are broadly buying Bitcoin through offshore funds as a standard practice. The moves seen so far are cautious, experimental, and often involve transparency and regulatory oversight rather than secretive offshore purchases. The landscape is evolving, with some countries leading in Bitcoin adoption as a reserve asset, but central banks remain primarily focused on traditional reserve assets and carefully studying the risks and benefits of digital currencies[1][2][3][5].