Sovereign Funds Eye Bitcoin: A Quiet Coup Brewing?
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Sovereign wealth funds are cautiously entering the Bitcoin market, with significant investments currently on hold, pending clearer regulatory frameworks in the US. Anthony Scaramucci, founder of SkyBridge, highlights the need for regulatory clarity regarding stablecoins, bank custody of digital assets, and pilot programs for tokenized securities before large-scale sovereign fund investments occur. Currently, holdings remain modest, with even major funds like Norway's and China's only making minor purchases. This cautious approach reflects the substantial size of Bitcoin's market capitalization (around $2.05 trillion), where even large investments would have minimal immediate market impact. However, a significant shift is anticipated if legal hurdles are cleared. The approval of banks to hold digital assets and the launch of tokenized securities on regulated exchanges could trigger substantial investments, potentially reaching trillions of dollars. Scaramucci predicts massive orders of $500 million to $1 billion, leading to dramatic price fluctuations. This potential influx of capital, coupled with increased institutional interest (as noted by ARK Invest CEO Cathie Wood's prediction of seven-figure Bitcoin prices by 2030), suggests a bullish outlook. While the US regulatory landscape remains crucial, Europe and parts of Asia are progressing with pilot schemes and sandboxes, potentially attracting early sovereign fund participation. Essentially, massive investment is waiting in the wings, poised to enter the market once regulatory clarity is established.
(Source: https://www.newsbtc.com/bitcoin-news/bitcoins-quiet-coup-wealth-funds-build-up-holdings/)
