Key Takeaways
- Bitwise says an unnamed sovereign wealth fund is selling gold and foreign exchange to fund part of its crypto allocation.
- The finding provides context for the firm’s earlier $1.3 million Bitcoin forecast for 2035.
- Over roughly nine years, to 2035, that would mean a compound annual growth rate of about 35.4%.
A sovereign wealth fund is selling gold and foreign-exchange reserves to finance part of its crypto investment, according to Bitwise — a striking example of digital assets competing for money held in traditional stores of value.
The disclosure appears in the asset manager’s institutional adoption report, providing a concrete funding example for Bitcoin’s “digital gold” argument.
It also puts fresh attention on Bitwise Chief Investment Officer Matt Hougan’s prediction that Bitcoin could reach $1.3 million by 2035.
Sovereign Fund Sells Gold to Fund Crypto Exposure
Bitwise’s full report, published Sept. 23, states:
“In one striking case, a sovereign wealth fund is funding part of its crypto allocation by selling foreign exchange and gold reserves.”
The findings draw on 15 anonymized interviews conducted in late March and April.
Bitwise provided no country, trade size, or execution date for the fund.
However, the funding position is notable, as selling existing assets to finance crypto exposure creates direct competition for portfolio space.
For Bitcoin bulls, the larger question is whether other investors will make similar decisions — and commit enough capital to affect demand.
Bitcoin Buyers Held Through the Sell-Off
In its research summary, Bitwise said every institution interviewed with crypto exposure owned Bitcoin. For nearly all of them, it was their first, largest, and longest-held crypto position.
None reduced their allocation through the roughly 50% market drawdown between late 2025 and the second quarter of 2026, while several bought more.
Most crypto allocations were between 1% and 2% of investable assets.
Investors instead identified investment-thesis failure, regulatory reversal, or an industry credibility crisis as potential reasons to sell.
Those responses suggest patience among the interviewed investors. A small interview sample, however, cannot establish how the entire institutional market would behave during another downturn.
Bitcoin’s Competition With Gold
As CCN previously reported, Hougan views Bitcoin as a competitor to gold, with its long-term valuation depending on how much of the global store-of-value market it can capture.
His earlier $1 million Bitcoin argument assumed the market would continue to expand.
Under that scenario, Bitcoin could reach the target by securing roughly one-sixth of the market within a decade, without needing to replace gold entirely.
However, the comparison remains contested within the industry.
In CCN’s March coverage, WisdomTree CEO Jonathan Steinberg rejected the “digital gold” label, noting that investors can already access tokenized, physically backed gold on blockchain networks.
Matt Hougan’s Earlier Bitcoin Predictions
Bitwise’s Hougan has repeatedly tied his bullish outlook to institutional adoption.
As CCN previously reported, Hougan argued that holding no Bitcoin was a portfolio “misallocation.”
He backed a return to $100,000 in 2026 and described the $1.3 million target for 2035 as “relatively easy.”
Earlier CCN coverage examined his argument that institutions controlling up to $200 trillion could generate substantial demand through small allocations.
Bitwise’s 2025 valuation report combines institutional demand and Bitcoin’s constrained supply.
Its assumptions include institutions allocating 1%–5% of portfolios to Bitcoin over the following decade.
The valuation model also projects the store-of-value market expanding from $29 trillion to $92 trillion.
How Much Would Bitcoin Need to Rise to Reach $1.3 Million?
With Bitcoin trading around $84,746 at the time of writing, reaching Bitwise’s $1.3 million target would require a gain of around 1,434% — taking its price to more than 15 times its current level.
Over roughly nine years, to 2035, that would mean a compound annual growth rate of about 35.4%.
That is higher than the 28.3% annual return in Bitwise’s original 2025 forecast because Bitcoin now starts from a lower price with less time remaining.
At $1.3 million per coin, Bitcoin’s valuation would approach $27.3 trillion using its maximum supply of 21 million BTC.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
