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SkyBridge Capital Managing Partner Anthony Scaramucci has weighed in on what it would take for Bitcoin to reach $1 million. Cryptocurrency regulations play a critical role in Scaramucci’s analysis. President Donald Trump’s involvement in the industry has threatened to derail the progress of cryptocurrency bills.

Amid a market resurgence in recent weeks, investors in Bitcoin, the largest cryptocurrency by market capitalization, have grown increasingly optimistic and $1 million price predictions are again flooding headlines. Recently, SkyBridge Capital Managing Partner Anthony Scaramucci has weighed in on what it would take for the asset to achieve this seemingly far-flung dream.

A Part Of The World’s Financial Services Architecture

In an interview with prominent market commentator Anthony Pompliano last week, Scaramucci said there will need to be more buy-in from market players with trillions of dollars in capital, particularly sovereign wealth funds, for Bitcoin’s price to hit the $1 million mark.

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“If you want to see a million dollar Bitcoin, that’s when somebody at a sovereign says, Okay, this is part of the infrastructure of the world’s financial services architecture, a result of which I have to own some of this property,” he said.

Sovereign wealth funds are state-owned investment funds typically fueled by excess revenue. Norway boasts the largest sovereign wealth fund, with $1.74 trillion in assets. According to the Sovereign Wealth Fund Institute, there are about 100 sovereign wealth funds holding about $13.75 trillion in total.

While a few of these funds already boast some Bitcoin exposure, most remain on the sidelines.

The sovereign wealth funds with known Bitcoin exposure include Bhutan’s Druk Holding and Investment with over 12,000 BTC worth about $1.24 billion, Wisconsin Board of Commissioner of Public Lands with 6 million shares of BlackRock’s (NYSE:BLK) spot Bitcoin ETF IBIT currently worth nearly $351 million and Abu Dhabi’s Mubadala Investment Co. with 8.2 million IBIT shares worth $479 million. Meanwhile, Norway’s fund has indirect exposure to the asset through investments in firms such as Coinbase Global (NASDAQ:COIN) and Strategy.

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Scaramucci said U.S. cryptocurrency regulations were critical to get sovereign wealth funds to go all in on Bitcoin.

“There’ll be large blocks of buying or people worth 10, 20, $30 trillion buying a half a billion dollars of Bitcoin, buying a billion dollars of Bitcoin,” he said, citing a future where the U.S. has established clear rules for stablecoins, cryptocurrency asset custody and tokenization.

Just two weeks ago, the cryptocurrency industry seemed well on its way to gaining these long-clamored-for regulations that could further legitimize the asset class in the world’s largest economy. However, in the past week, growing concerns over President Donald Trump‘s involvement in the space have threatened to derail the progress.

Legislative Focus Shifts

Last week, a stablecoin bill that had been making quick progress in the Senate failed to obtain the required votes as several Senate Democrats pulled support at the last minute. Similarly, the House could not hold a joint committee hearing on a cryptocurrency market structure bill after Democrats staged a walkout.

The legislative focus has shifted to a probe of Trump’s cryptocurrency ventures. A bill has also been introduced to ban senior government officials from creating or promoting cryptocurrencies.

Despite these regulatory hiccups, the cryptocurrency market is holding strong as broader risk sentiment improves on cooling trade tensions. As of last look, Bitcoin was trading at $103,000, an increase of more than 9% in the past seven days.

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This article Here's What It Will Take For Bitcoin To Realize $1M Dream According To Anthony Scaramucci originally appeared on Benzinga.com

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