Sovereign Funds Await US Regulatory Clarity Before Bitcoin Investments

Sovereign wealth funds have started to invest in Bitcoin, but significant investments are still on hold. According to SkyBridge founder Anthony Scaramucci, state-owned funds will not make large investments until the United States clarifies how digital assets will be integrated into its financial system. Scaramucci made these remarks on Anthony Pompliano’s podcast on May 8, indicating that the situation is one of waiting for regulatory clarity.

Scaramucci emphasized that without clear guidance from US lawmakers, large-scale purchases by sovereign funds are unlikely. He highlighted the need for regulation of stablecoins, guidance on bank custody of tokens, and pilot programs for tokenized stocks as crucial elements missing from the current regulatory framework. If Congress passes a stablecoin bill this year and regulators provide details on how banks can hold Bitcoin and other tokens, sovereign funds may feel more comfortable moving beyond small, tactical trades.

Currently, the majority of sovereign funds have maintained modest Bitcoin holdings. For instance, Norway’s sovereign fund, one of the largest in the world with around $1.73 trillion under administration, and China’s $1.33 trillion pool have made only insignificant purchases so far. Bitcoin’s market capitalization is close to $2.05 trillion, meaning even a $100 million transaction would have a minimal impact on the market. This cautious approach underscores the careful nature of these investors.

If banks are permitted to custody digital assets and tokenized stocks and bonds begin trading on regulated exchanges, Scaramucci anticipates a significant shift. He has previously mentioned that large blocks of sovereign wealth funds could hold $10 trillion, $20 trillion, or even $30 trillion, or invest in $500 million or $1 billion orders. When these large blocks enter the market, price fluctuations could be substantial. Executing an order of this magnitude within a narrow trading window could drive values higher quickly.

Some analysts believe that Bitcoin could reach new milestones. ARK Invest CEO Cathie Wood stated in February that seven-figure prices by 2030 are more feasible due to increased interest from large institutions. If sovereign funds view Bitcoin as just another asset class, with each new wave of demand further restricting available supply, it could lead to a scenario that many investors only dream of today.

The path forward remains uncertain. Scaramucci has proposed a crypto bill in America by November, but Washington’s timeline could fall behind. Meanwhile, some regions in Europe and Asia are operating pilot schemes for tokenized assets and building sandboxes for stablecoins. These tests could attract some sovereign players earlier. For now, deep pockets are waiting, watching for a clear signal before making their largest bets.