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Sovereign Fund Sells Gold for Bitcoin Boost
3 Oct
Summary
- A sovereign wealth fund is selling gold and forex to fund crypto investments.
- Institutions interviewed with crypto exposure held Bitcoin through downturns.
- Bitcoin is viewed as a competitor to gold for store-of-value assets.
A sovereign wealth fund has been selling gold and foreign exchange reserves to fund its cryptocurrency investments, a significant development highlighted by asset manager Bitwise. This action provides concrete evidence for Bitcoin's argument as a "digital gold" and indicates direct competition for portfolio space with traditional assets.
Bitwise's report, based on anonymized interviews, also revealed that institutions with crypto exposure predominantly held Bitcoin. These investors maintained or increased their Bitcoin holdings even during a significant market drawdown between late 2025 and the second quarter of 2026, suggesting a strong conviction in the digital asset.
Matt Hougan, Bitwise's Chief Investment Officer, views Bitcoin as a competitor to gold in the global store-of-value market. His earlier forecast of Bitcoin reaching $1.3 million by 2035 is contingent on its ability to capture a substantial portion of this market, implying continued growth and adoption.
