Sovereign Wealth Funds await US Bitcoin regulation for major investments

Anthony Scaramucci, the founder of SkyBridge, has stated that significant investments in Bitcoin by Sovereign Wealth Funds (SWFs) will not occur until the United States implements clearer regulations for the digital assets industry. Scaramucci, who previously served as the White House director of communications during US President Donald Trump’s first term, made these remarks on a podcast on May 8. He believes that while SWFs are already gaining exposure to Bitcoin, substantial allocations will only happen once the regulatory framework is established.

Scaramucci emphasized that legislation will pave the way for "large blocks of buying" from SWFs. He mentioned that if stablecoin regulation is passed, traditional banks receive clear guidance on custodying Bitcoin and other digital assets, and progress is made on tokenizing stocks and bonds, a significant wave of buying from SWFs is likely to follow. This could result in entities worth trillions of dollars purchasing large amounts of Bitcoin, potentially driving the price to new heights.

Scaramucci's comments align with the broader sentiment that regulatory clarity is crucial for the mainstream adoption of Bitcoin. He noted that a "million dollar Bitcoin" will likely come when a SWF acknowledges Bitcoin as part of the world’s financial services infrastructure. This perspective underscores the importance of regulatory support in legitimizing Bitcoin as a viable investment asset.

Scaramucci's views are echoed by other industry experts. For instance, the CEO of a prominent investment firm recently stated that the chances of Bitcoin reaching a seven-figure price by 2030 have increased due to the institutionalization of this new asset class. This institutional interest, coupled with regulatory clarity, could drive significant investments in Bitcoin, potentially leading to a "million dollar Bitcoin" in the future.