Sovereign Wealth Funds (SWFs) are inching closer to embracing Bitcoin, but the real fireworks won’t kick off until the United States rolls out comprehensive regulations for the crypto industry. This is the sentiment shared by Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director, during a recent conversation on Anthony Pompliano’s podcast. Scaramucci, a notable voice in both finance and politics, suggested that while SWFs are dabbling with Bitcoin, the substantial influx of capital is contingent on legislative clarity.
The Waiting Game for Legislative Clarity
Scaramucci explained that the current involvement of SWFs in Bitcoin is modest, perhaps more akin to sticking a toe in rather than diving headfirst. “I think they are buying it, I think they are buying it on the margin,” he noted, emphasizing the cautious approach these funds are taking. The real game-changer, according to Scaramucci, will be the enactment of specific legislation in the United States—a sentiment he has echoed since his February interview with the Financial Times. This sentiment is echoed in the ongoing discussions in U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer, highlighting the legislative efforts that could shape the future of crypto investments.
SWFs, those government-backed behemoths managing national reserves, are not just sitting idle. Take Norway’s SWF, for instance, the largest in the world with a staggering $1.73 trillion under management. In contrast, Bitcoin’s market cap stands at approximately $2.05 trillion, according to CoinMarketCap. A significant alignment of regulatory stars could see these funds making serious moves into the digital asset space.
What Could Trigger the Tsunami?
Scaramucci didn’t mince words about what he believes could unleash a tidal wave of investments from SWFs. “If stablecoin regulation is passed, if there’s clear guidance for traditional banks to custody Bitcoin and other digital assets, and if progress is made on the tokenization of stocks and bonds, that’s when you’ll see large blocks of buying,” he asserted. He painted a picture where entities with assets in the tens of trillions could start purchasing Bitcoin in half-billion or even billion-dollar chunks. This aligns with the regulatory efforts seen in other regions, such as the UK’s FCA Seeks Public and Industry Views on Crypto Regulation, which underscores the global push towards clearer crypto guidelines.
This isn’t just idle speculation. Cathie Wood, CEO of ARK Invest, has bolstered this outlook, suggesting that the odds of Bitcoin hitting a seven-figure price by 2030 have grown. Her argument hinges on the increasing institutionalization of cryptocurrencies—a trend that appears to be gaining momentum.
The Broader Implications
The implications of SWFs moving significantly into Bitcoin are vast. For one, it could further legitimize Bitcoin as a core component of the global financial infrastructure. “If you wanna see a million-dollar Bitcoin,” Scaramucci mused, “that’s when someone at a sovereign fund says, ‘Okay, this is part of the infrastructure of the world’s financial services architecture.'”
However, it’s not all smooth sailing. The path to widespread adoption is fraught with regulatory hurdles and market volatility. Lawmakers in the U.S. have yet to provide the clarity needed to assure SWFs of the safety and legality of such investments. Until then, potential investors might remain on the sideline, watching and waiting.
Looking Ahead
As we navigate through 2025, the crypto community will be keenly observing the legislative developments in the U.S. Whether or not these translate into a “gigantic groundswell” of SWF buying remains to be seen. For now, the Bitcoin market continues its dance with institutional investors, each step closely monitored by enthusiasts and skeptics alike.
In the interim, the specter of what could be hangs tantalizingly over the market. Will 2025 be the year that legislative clarity provides the spark for SWFs to dive into the Bitcoin pool? Or will the regulatory clouds linger, keeping the big players at bay? Only time will tell, but one thing is certain: the stakes have never been higher.
Source
This article is based on: Bitcoin won’t see ‘gigantic’ SWF buying until laws greenlit — Scaramucci
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
