Sovereign Funds Could Invest Billions Under Favorable Legislation
SkyBridge Capital founder Anthony Scaramucci has stated that Bitcoin could play a significant role in sovereign funds’ investment portfolios pending advancements in the regulatory framework for digital assets in the United States. According to him, the involvement of sovereign wealth funds in Bitcoin hinges directly on regulatory clarity, particularly regarding stablecoins and banking regulations. Despite Bitcoin’s substantial price growth, currently trading around $103,676.97 with a market capitalization exceeding $2.05 trillion, the lack of a clear regulatory framework in the U.S. limits large-scale investment actions from the world’s largest government investment funds.
Regulatory Clarity as the Key Factor for Sovereign Funds
Anthony Scaramucci highlighted regulatory challenges facing Bitcoin adoption by sovereign wealth funds. According to him, the lack of clear rules in the U.S. limits large-scale investment actions. Some sovereign funds already engage with Bitcoin marginally, but broader allocations await regulatory clarity.
“I don’t think it is going to be a gigantic groundswell of buying until we greenlight legislation in the United States,” Scaramucci stated in an interview with Cointelegraph.
The expert warned that unless the United States passes pivotal regulations, massive capital entry from sovereign wealth funds remains uncertain. However, with successful legislation, sovereign wealth funds could allocate substantial resources to Bitcoin investments.
“Sovereign funds control trillions of dollars in assets, and even a small allocation toward Bitcoin could significantly impact the market,” comments Maria Voronova, lead cryptocurrency market analyst at consulting company Digital Assets Research. “For example, the combined assets of just the ten largest sovereign funds exceed $8.2 trillion. If they were to allocate just 1% of their assets to Bitcoin, this would lead to a capital inflow of more than $82 billion.”
Clear legislation is essential for banks to custody Bitcoin, a step that Scaramucci claims could trigger mass investments if supportive of digital assets.
Three Key Legislative Changes for Mass Capital Inflow
According to Anthony Scaramucci, three major legislative changes are necessary to create a favorable environment for sovereign fund investments in Bitcoin:
- Passing a stablecoin regulation bill. This will provide legal certainty for an important segment of the cryptocurrency market, indirectly increasing confidence in the Bitcoin ecosystem.
- Allowing banks to custody Bitcoin. This is critical for institutional investors, including sovereign funds, which require reliable custodial solutions from regulated financial institutions.
- Advancing the tokenization of assets. Developing a regulatory framework for tokenizing traditional assets will create synergy with the Bitcoin ecosystem and expand opportunities for integrating cryptocurrencies into traditional financial instruments.
“Each of these is significant for Bitcoin’s market influx,” notes Scaramucci.
“Adopting clear stablecoin legislation could be the first domino in a chain of regulatory changes,” explains Alex Petrov, partner at law firm Crypto Legal Advisors. “This will give regulators a foundation for further development of the regulatory framework for other aspects of the cryptocurrency market, including asset custody and tokenization.”
Industry reactions included concerns over the pace of potential U.S. regulatory policies. Financial analysts suggest that Scaramucci’s predictions align with necessary structural changes in global finance. Institutional circles observe that regulatory advancements in the U.S. might redefine sovereign wealth assets’ engagement with cryptocurrencies.
Historical Context and Potential Market Impact
In the past, comprehensive regulation paved the way for institutional buying, similar to the 2020 surge when Bitcoin’s value skyrocketed following clearer guidelines in key markets.
Bitcoin’s market highlights include a price of $103,676.97 and a market cap exceeding $2.05 trillion, as reported by CoinMarketCap. Despite a recent 1.95% dip, Bitcoin’s 30-day gain stands at 27.43%. The circulation count is nearing its max supply, indicating intensified market activity.
Coincu analysts foresee potential regulatory changes unlocking vast sovereign funds investments in Bitcoin. Effective stablecoin legislation and tokenization advancements could become transformational, with market dynamics adjusted by substantial institutional engagement.
“History shows that a clear regulatory environment often precedes institutional adoption,” notes Sergei Volkov, professor of finance at the Institute of Digital Economy. “For example, the approval of Bitcoin ETFs in the U.S. in early 2025 led to a significant inflow of institutional capital. A similar effect could occur with sovereign funds if appropriate regulatory standards are adopted.”
Some experts, however, warn of potential obstacles on the path to full regulatory recognition of Bitcoin in the United States.
“There are serious political disagreements regarding cryptocurrency regulation, and achieving consensus on comprehensive legislation may take longer than the market expects,” cautions Anna Sokolova, a former financial policy advisor. “A more likely scenario is phased regulation, starting with stablecoins and gradually advancing to broader aspects of the cryptocurrency market.”
Despite these cautions, Scaramucci’s forecast underscores the growing recognition of Bitcoin as a legitimate asset class among traditional financial circles. If his predictions come true, and sovereign funds begin actively investing in Bitcoin, this could lead to a significant price increase and further strengthen the position of the first cryptocurrency in the global financial system.