Kevin O’Leary Says Sovereign Wealth Funds Want Bitcoin

A recent YouTube post by Anthony Pompliano showed excerpts of Kevin O’Leary talking about Bitcoin interest from sovereign wealth funds (SWF).

SWF refers to sovereign wealth funds, usually financed by a country’s trade surplus. As such, total assets managed by SWFs tend to be substantial.

“The acceptable investments included in each SWF vary from fund to fund and country to country. Countries can create or dissolve SWFs to match the needs of their populations.”

According to swfinstitute.org, the top three SWFs are Norway Government Pension Fund Global, China Investment Corporation, and Abu Dhabi Investment Authority, with total assets of $1.338 trillion, $1.222 trillion, and $708.8 billion, respectively.

Sovereign wealth funds want Bitcoin

O’Leary mentioned that he is in close contact with several SWFs, citing Norway, the UAE and Saudi as examples – before adding: “They want Bitcoin.”

Commenting on the demand for alternative cryptocurrencies, such as Ethereum, he said: “the gas taxes are a joke; that’s the problem.” However, he said that if Ethereum “becomes the default platform for other digital assets,” demand for SWFs could increase.

Nevertheless, O’Leary revealed that in discussions with SWFs, he discovered that Bitcoin is the overwhelmingly preferred digital asset of SWFs. And that proposed allocations vary from 0.5% to 3% of the total asset fund.

“When you ask them, ‘if you could buy one digital asset, which one would it be and what allocation?’ It’s about fifty basis points on the low end, up to three hundred basis points from the high end. And ninety-nine percent of the time they say Bitcoin.”

What prevents SWFs from buying?

The Canadian entrepreneur explained that the lack of regulatory clarity is holding SWFs back from buying Bitcoin. He added that if US policymakers rolled out a legal framework today, the price of BTC would reach $60,000 before September.

“Right now, if we had policy on Bitcoin, I swear to you the price would be sixty thousand dollars in two weeks.”

Pompliano expressed confidence that policymakers will get their act together, saying “the regulatory stuff will take care of itself.”

Moreover, citing the growing trend of treating Bitcoin as a commodity rather than a security, Pompliano is confident that the SWF money is on the way.

“But Bitcoin continues to be the asset that all regulators around the world agree on. Bitcoin is not a security…”