Sovereign Wealth Funds Eye Bitcoin, Await US Crypto Regulation

Sovereign Wealth Funds Eye Bitcoin, But Major Investments Await U.S. Crypto Regulation

  • Sovereign Wealth Funds are starting to gain Bitcoin exposure, but major moves depend on clear U.S. crypto regulation.
  • Anthony Scaramucci expects significant institutional buying once stablecoin rules and digital asset custody guidance are established.
  • Experts highlight growing institutional interest in Bitcoin, which could accelerate if considered part of global financial infrastructure.

Government-owned investment funds, known as Sovereign Wealth Funds (SWFs), have begun investing in Bitcoin, but notable, large-scale allocations will likely only occur after the United States provides clear digital asset regulations, according to SkyBridge founder Anthony Scaramucci. Speaking on Anthony Pompliano’s podcast on May 8, Scaramucci said SWFs are currently buying Bitcoin “on the margin” as they await regulatory clarity.

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Scaramucci noted that a significant increase in SWF buying is unlikely until the U.S. approves new legislation for the crypto industry. He previously indicated to the Financial Times that the U.S. government may propose major crypto regulations as soon as November. According to data from Visual Capitalist, the world’s largest SWFs are in Norway, with about $1.73 trillion under management, and China, with $1.33 trillion.

The market capitalization of Bitcoin is around $2.05 trillion, as reported by CoinMarketCap. Scaramucci explained that if U.S. lawmakers pass stablecoin regulation, provide guidance for banks to hold Bitcoin and other digital assets, and make progress on tokenizing traditional assets like stocks and bonds, large-scale purchases from SWFs could occur soon after. “Then I will tell you that there will be large blocks of buying, or people worth 10, 20, 30 trillion dollars, buying a half a billion dollars of Bitcoin, buying a billion of Bitcoin,” he stated.

Scaramucci also suggested that a dramatic price rise for Bitcoin could happen if a SWF officially classifies Bitcoin as an essential part of the world’s financial services system. “But if you wanna see a million dollar Bitcoin, that’s when someone at a sovereign says ok, this is part of the infrastructure of the world’s financial services architecture,” Scaramucci added.

Ark Invest CEO Cathie Wood also shared her perspective, stating in February that the likelihood of Bitcoin reaching $1 million by 2030 has increased. “We actually think the odds have gone up that our bull case will be the right number because of what is becoming the institutionalization of this new asset class,” Wood said.

Institutional investors have continued acquiring Bitcoin at values above $100,000, and some experts argue that the 10x price cycle for Bitcoin may be underway, with further regulatory progress potentially igniting greater interest and larger transactions from global funds.

Sovereign Wealth Funds typically manage national savings built from surpluses like oil revenue or strong trade balances. Their investment decisions are considered major signals for trends in global finance.

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