Sovereign funds buy Bitcoin at lower prices

• MidChains CEO Basil Al Askari said at least one sovereign wealth fund has been buying spot Bitcoin, with a second potentially following.
• He said some institutional investors view current Bitcoin prices as an attractive entry point despite continued outflows from US spot Bitcoin ETFs.
• The comments suggest long-term institutional demand could tighten Bitcoin supply if sovereign investors continue accumulating.

Bitcoin (CRYPTO:BTC) is attracting buying interest from sovereign wealth funds at current price levels, with MidChains Chief Executive Officer Basil Al Askari saying at least one state-owned investment fund has accumulated spot Bitcoin and another may follow in the coming weeks.

Al Askari said retail cryptocurrency participation has slowed, while institutional and corporate investors have continued increasing exposure as they view current Bitcoin prices as an attractive long-term entry point.

“I would be able to confirm that one, at least one, and possibly in the coming weeks, two sovereign wealth funds have been accumulating spot Bitcoin specifically,” Al Askari said on Cointelegraph's Chain Reaction podcast.

Al Askari said sovereign wealth funds, which collectively manage more than US$13 trillion, are accumulating Bitcoin gradually rather than making purchases likely to trigger immediate market moves, adding that such investments could encourage other institutions to begin allocating capital to the asset.

He said long-term institutional investors could make Bitcoin increasingly scarce if they continue holding the asset over extended periods, while as MidChains is a privately held company there was no share price reaction.

The comments follow Abu Dhabi's Mubadala Investment Company investing US$437 million in BlackRock's iShares Bitcoin Trust, while Bhutan's Druk Holding and Investments remains one of the earliest sovereign holders of Bitcoin despite reducing part of its position this year.

The remarks also come as US spot Bitcoin exchange-traded funds have recorded more than US$4.1 billion in monthly net outflows, while corporate treasury companies including Strategy have continued buying, adding 3,657 Bitcoin during the month.

At the time of reporting, Bitcoin price was $59,485.46.