Sovereign Wealth Funds Begin Acquiring Bitcoin Amid Regulatory Uncertainty

Sovereign wealth funds are cautiously entering Bitcoin, but significant investments await clearer U.S. regulations regarding digital assets, according to SkyBridge founder Anthony Scaramucci on the Anthony Pompliano podcast.

Regulatory Clarity Needed

Sovereign funds will delay major purchases until U.S. lawmakers provide clear guidelines.
Key missing elements include regulations on stablecoins, bank custody of tokens, and pilot programs for tokenized stocks.
A stablecoin bill and bank guidance could prompt larger investments from these funds.

Current Holdings Are Minimal

Most sovereign funds have limited Bitcoin holdings.
Norway's fund (largest globally at $1.73 trillion) and China's fund ($1.33 trillion) have made only minor purchases.
Bitcoin's market cap is approximately $2.05 trillion, indicating that even large transactions have minimal impact.

Potential for Increased Demand

If banks can custody digital assets and tokenized assets trade on regulated exchanges, demand may surge.
Scaramucci anticipates sovereign funds holding substantial amounts, potentially executing multi-billion dollar orders.
Large orders executed in a short time could lead to significant price increases.

Price Forecasts

Analysts predict Bitcoin could reach new heights; ARK Invest's Cathie Wood suggested seven-figure prices by 2030 due to institutional interest.
Sovereign funds viewing Bitcoin as an asset class could restrict supply and drive prices higher.
Regulatory developments in Europe and Asia may influence the timing of investments by these funds.

Investors are observing the situation closely, awaiting definitive regulatory signals before committing large capital.