The big hodln: International sovereign wealth funds apparently invested in bitcoin
Singaporean sovereign wealth fund Temasek appears to hold Bitcoin. This means state actors have arrived on the global crypto stage.
First it was the nerds, then it was the hodlers, then it was big business. Are the states coming now? According to scene insiders, it shouldn’t be long before state-run funds, so-called sovereign wealth funds, are making Crypto Bull inroads into Bitcoin. On the contrary, according to hedge fund manager Raoul Pal, this has already happened. As the CEO of the business news platform Real Vision wrote on Twitter, the Singaporean sovereign wealth fund Temasek is already invested in BTC.
Meanwhile, the news comes from Robert Gutmann, CEO of the New York Digital Investment Group (NYDIG). He was recently a guest on Pal’s podcast. According to this, Temasek has bought virgin Bitcoin directly from miners and thus diversified its assets. In total, the Singaporean sovereign wealth fund holds assets worth more than 300 billion US dollars.
Temasek is not alone with this investment. The New Zealand Pension Fund is also said to have held a five percent bitcoin position since October 2020. This is according to a report in local newspaper Stuff.
„If you like investing in gold, you can’t really disregard BTC,“ said the CIO of the KiwiSaver fund.
Buy or ban?
The entry of state actors onto the global stage of the Bitcoin game would be a paradigm shift. After all, states are considered the biggest threat to the project. Even Ray Dalio considers a Bitcoin ban in the US „very likely“, as we had reported in this space. Market observers are undecided on this issue. It is true that examples such as India’s Bitcoin ban show that there are some governments with authoritarian policies against the cryptocurrency. But whether the ban is enforceable at all is completely open. After all, BTC functions entirely without centralised authorities that can be forced to give up by order. Theoretically, Bitcoiners can even „store“ their private key in their heads by memorising it. In other words, Bitcoin itself cannot be banned. What states can ban are the so-called fiat onramps, i.e. exchanges and brokers.
However, game theory suggests that state actors will do exactly the opposite. As can be seen in the example of Iran, marginalised countries can certainly benefit from early Bitcoin acceptance. So once states recognise that Bitcoins are too powerful and resilient to ban, the next best solution is broad and early adoption – Singapore’s sovereign wealth fund seems to have understood this.