Bitwise Report: Sovereign Wealth Funds Selling Gold to Buy Bitcoin

Ryan Rasmussen, head of research at Bitwise Asset Management, has revealed that sovereign wealth funds are beginning to sell portions of their gold holdings to acquire Bitcoin, according to the firm’s inaugural institutional crypto adoption report.

The report, based on interviews with 15 major institutions including pensions, endowments, and sovereign funds, found that none sold their Bitcoin during the recent bear market when the price fell from approximately $125,000 to $60,000. Rasmussen noted that many institutions instead bought more during the decline, treating Bitcoin as a long-term hedge against currency debasement alongside gold.

Rasmussen highlighted that the introduction of U.S. spot Bitcoin ETFs has fundamentally changed market dynamics, attracting consistent capital inflows and creating a shallower bear market. He pointed to allocations from major firms like Wells Fargo, Fidelity, and BlackRock, which range from 2% to 8% of portfolios, as evidence of deepening institutional adoption.

The Bitwise executive concluded that the $60,000 price level likely represented the market bottom, bolstered by this sustained institutional demand. He emphasized that institutions value Bitcoin’s lack of correlation with traditional assets like stocks and bonds, reinforcing its role as a strategic reserve asset.