Bitcoin buying by sovereign wealth funds may surge after US laws clear

Sovereign wealth funds (SWFs) have begun modest Bitcoin (CRYPTO:BTC) investments but large-scale buying depends on clearer US regulations, SkyBridge founder Anthony Scaramucci said on May 8.

Scaramucci noted on Anthony Pompliano’s podcast that SWFs are currently buying Bitcoin “on the margin,” but a “gigantic groundswell” will not happen until the US greenlights legislation for digital assets.

He identified key regulatory milestones needed: stablecoin regulation, guidance allowing traditional banks to custody Bitcoin and other tokens, and progress on tokenising stocks and bonds.

Once these are in place, he expects significant buying from SWFs managing trillions in assets.

Norway’s $1.73 trillion sovereign fund and China’s $1.33 trillion fund have only made small Bitcoin purchases so far.

Bitcoin’s market cap is about $2.05 trillion, making even $100 million trades relatively minor.

“Then I will tell you that there will be large blocks of buying, or people worth 10, 20, 30 trillion dollars, buying a half a billion dollars of Bitcoin, buying a billion of Bitcoin,” Scaramucci said,

He added that a “million dollar Bitcoin” would require a sovereign fund recognising Bitcoin as part of the global financial services infrastructure.

“If you wanna see a million dollar Bitcoin, that’s when someone at a sovereign says ok, this is part of the infrastructure of the world’s financial services architecture,” he said.

ARK Invest CEO Cathie Wood recently echoed this view, saying the odds of Bitcoin reaching seven figures by 2030 have increased due to institutional adoption.

Scaramucci expects US crypto legislation proposals by November, which could trigger the next phase of institutional Bitcoin demand.

Until then, sovereign funds remain cautious, awaiting regulatory clarity to move beyond small, tactical trades.

At the time of reporting, the Bitcoin (BTC) price was $103,983.