Bitcoin’s market potential for large-scale purchases by Sovereign Wealth Funds (SWFs) is on hold, pending clearer regulation in the US, according to SkyBridge Capital founder, Anthony Scaramucci.
Scaramucci, who previously served as the White House director of communications during the initial term of former US President Donald Trump, shared these insights on Anthony Pompliano’s podcast on May 8. He emphasized that SWFs are subtly gaining exposure to Bitcoin. “I believe they are buying it, but they are doing so cautiously,” stated Scaramucci.
Scaramucci anticipates that the US government will propose crypto-specific legislation in November, as he had previously mentioned in an interview with the Financial Times in February. He further stated, “I don’t foresee a massive wave of buying until we get the green light for regulation in the United States.”
SWFs are state-owned investment entities that manage national savings, typically generated from surplus revenues such as trade gains or profits from oil. Norway has the world’s largest SWF, managing around $1.73 trillion in assets, with China following closely with $1.33 trillion, based on data from Visual Capitalist.
As per CoinMarketCap, Bitcoin’s market cap is approximately $2.05 trillion. Scaramucci believes that if regulations for stablecoin are approved, traditional banks are given clear guidance for Bitcoin and other digital assets custody, and progress is made on tokenizing stocks and bonds, a significant wave of buying from SWFs can be expected.
Scaramucci predicted, “If that happens, we will see large-scale purchases, with entities worth 10, 20, 30 trillion dollars buying half a billion dollars of Bitcoin, or even a billion.” He added, “But if you want to witness a million-dollar Bitcoin, it will only happen when a sovereign entity acknowledges it as a part of the world’s financial services architecture.”
ARK Invest CEO Cathie Wood recently opined that the odds of Bitcoin reaching a seven-figure valuation by 2030 have escalated. “We believe that the chances have increased that our bullish case will prove correct owing to the growing institutionalization of this new asset class,” she stated in February.
