Bitwise Research Director: Sovereign Wealth Funds Are Selling Gold to Buy Bitcoin

According to a report by Golden Finance, on September 30, Bitwise Research Director Ryan Rasmussen analyzed the company's first institutional crypto adoption report during an interview. The report surveyed 15 major institutions, including pension funds, endowments, foundations, and sovereign wealth funds. During the period when Bitcoin fell from $125,000 to $60,000, none of the surveyed institutions sold their holdings; instead, several chose to increase their positions. Rasmussen stated that these institutions view Bitcoin alongside gold as a tool to hedge against currency devaluation. Wells Fargo allocated 2% to 3% of its portfolio to Bitcoin, while Fidelity and BlackRock provided allocation ranges of 2% to 8%. He noted that the introduction of ETFs has made this Bitcoin bear market shallower compared to previous cycles, with weekly ETF inflows once reaching $2.5 billion, bringing a new wave of capital into the market. He also mentioned that sovereign wealth funds are selling gold to purchase Bitcoin and believes that $60,000 constitutes the bottom for this cycle. Additionally, he pointed out that Bitcoin has low correlation with bonds, gold, and stocks.