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 option for large institutional investors.

Scaramucci previously said in a February interview that he expects the US government to propose crypto legislation in November. This anticipation highlights the growing expectation within the industry for regulatory developments that could facilitate greater institutional involvement in digital assets.

SWFs are government-owned investment funds that manage national savings, often built from surplus revenues like oil profits or trade gains. These funds play a significant role in global financial markets, and their entry into the Bitcoin market could have substantial implications for the digital asset's price and adoption.

Scaramucci's insights provide a clear roadmap for the future of Bitcoin in the context of institutional investment. As regulatory frameworks evolve, the potential for SWFs to make substantial investments in Bitcoin becomes more tangible. This could lead to a new era of financial services, where digital assets play a central role in the global economy.