Sovereign Fund Dumps Gold for Crypto as Bitcoin's Store-of-Value Status Grows

A sovereign wealth fund is selling gold and foreign exchange reserves to finance part of its cryptocurrency investment, a move that may indicate a shift towards digital assets as a store of value.

According to Bitwise, an unnamed sovereign wealth fund is using the proceeds from the sale of gold and foreign exchange to fund its cryptocurrency allocation.

Bitwise's Chief Investment Officer, Matt Hougan, has previously predicted that Bitcoin could reach $1.3 million by 2035, a prediction that relies on institutional adoption and a compound annual growth rate of 35.4% over the next nine years.

The fund's decision to sell gold and foreign exchange to fund its cryptocurrency allocation creates direct competition for portfolio space and raises questions about whether other investors will make similar decisions and commit enough capital to affect demand.