• Singapore's state-owned fund Temasek has been buying Bitcoin from miners for a while.
  • New York Digital Investment Group has been in discussions with sovereign wealth funds about investing in Bitcoin.
  • Ray Dalio suggested that the US could potentially ban Bitcoin if it becomes too successful. 

While institutions have steadily started to look into adding Bitcoin to their balance sheets, there has been speculation that sovereign funds could be following the same path.

State-owned money flowing into crypto

State-owned investment funds could be following in the footsteps of MicroStrategy and Tesla, who have incorporated Bitcoin as part of their treasury funds. In a podcast hosted by Real Vision’s Raoul Pal, Robert Gutmann, the CEO of the New York Digital Investment Group (NYDIG), revealed that the firm has been in discussions with sovereign wealth funds about potentially investing in Bitcoin.

The Real Vision founder also confirmed Gutmann’s statement and added that Singapore’s sovereign wealth fund, with $306 billion in assets under management, has been purchasing virgin Bitcoin from miners for a while. 

Pal, famous for his bullish stance on Bitcoin, said that Bitcoin could hit the $1 million target in five or six years as there is an “enormous wall of money coming” into the market. He explained:

It’s an enormous wall of money, just the pipes aren’t there to allow people to do it yet, and that’s coming. But it’s on everyone’s radar screen, and there are a lot of smart people working on it.

A good chance the US will outlaw Bitcoin

While some countries such as Singapore have continued to embrace cryptocurrencies with their regulations, debates in India about banning digital assets have been a growing concern worldwide. 

Although regulators in the United States have not given any indication of a ban on cryptocurrencies, Ray Dalio, founder of the world’s largest hedge fund, believes Bitcoin could be banned in the country if it becomes too successful.

Dalio, the founder of Bridgewater Associates with $150 billion in AUM, suggested that given the history of money, governments “don’t want other monies to be operating or competing, because things can get out of control.”

Debates about a blanket ban on Bitcoin among policymakers in India could be a growing trend for governments, Dalio stated. He further pointed out that the Gold Reserve Act of 1934 made it illegal for investors to own gold because, at that time, the government did not want gold to compete with money and credit as a store of wealth — hence he believes the same could happen with Bitcoin.

Dalio’s understanding of government surveillance points to the fact that authorities could track the people involved in Bitcoin transactions. He doubts that the digital asset’s privacy could be protected.

However, the billionaire himself has been warming up to Bitcoin and even said that the cryptocurrency has proven itself in the past 10 years. Dalio pointed out that the flagship cryptocurrency has not been hacked and that Bitcoin is like digital cash.

US government auctions off Bitcoin during crypto spring fever

While Singapore’s sovereign wealth fund continues to accumulate Bitcoin for its treasury, the US government’s General Service Administration (GSA) is auctioning off 6.79 Bitcoin, valued at over $383,000, at the time of the announcement. 

The federal government started to auction Bitcoin in 2014, with the previous auction held on March 17 with 31 bidders. The winning bid was at $53,104 for 0.7501 BTC, which roughly translates to $70,792 for one Bitcoin — giving the government a 20% premium over the market price of around $59,000.

Thomas Meiron, the regional commissioner for GSA, noted that the cryptocurrency market became one of the hottest auctions in 2021, and the administration expects “this auction will generate even more excitement among cryptocurrency investors.”


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

Near protocol (NEAR) co-founder Illia Polosukhin stated in a social media post on Wednesday plans for NEAR to launch NEAR AI, a user-owned AI system that will allow users to build web3 apps without code on an end-to-end network.

More Near News

US House of Reps passes bill aiming to regulate cryptocurrencies

US House of Reps passes bill aiming to regulate cryptocurrencies

FIT21 bill received massive support as the House of Representatives voted to pass the bill on Wednesday. The White House and US Securities & Exchange Commission (SEC) Chair, Gary Gensler, expressed concerns about the potential impact of the FIT21 bill on investor protections in a statement.

More Cryptocurrencies News

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum (ETH) is trading sideways on Wednesday as BlackRock, Bitwise and Grayscale submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC). The agency has also begun conversations with issuers on S-1s applications.

More Ethereum News

As Ethereum spot ETF approval nears, these altcoins could explode

As Ethereum spot ETF approval nears, these altcoins could explode

It is not surprising that altcoins related to Bitcoin saw a major rally post-Bitcoin spot ETF approval. Likewise, tokens closely related to Ether could ride the ETF approval wave. Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline nears. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP