In a recent video, Justin Verrengia, the host of the popular cryptocurrency channel CryptoNewsAlert, said the Saudi Arabian and Qatari governments are sizing up a huge Bitcoin investment, which could be announced next week.
The analyst stated that the two governments may be looking to acquire around one million BTC using their sovereign weight funds. In comparison, the wallet address of Satoshi Nakamoto, Bitcoin’s anonymous creator, holds around 1.1 million Bitcoins.
The rumored buys, which have since gone mainstream, came after noted Bitcoin maximalist Max Keiser raised the speculation. According to a tweet by Keiser referenced in the video, the investment in Bitcoin from the two countries will dwarf previous investments from giants such as BlackRock and MicroStrategy.
As noted in the video, the shift to the flagship cryptocurrency asset came after a Saudi cleric declared Bitcoin acceptable under Islam. Following that, Verrengia referenced a report that Saudi oil giant Aramco had partnered with SBI Holdings to delve into the digital asset space. According to the analyst, Bitcoin is expected to benefit from the partnership.
Meanwhile, another report also mentioned that the Qatari government is looking to pour around $500 billion from its sovereign wealth fund (SWF) into Bitcoin. Notably, the rumored buys mirror sentiments that have trailed the spot Bitcoin exchange-traded fund (ETF) launch in the United States.
Analysts say the launch, which came on January 11 following years of delay by regulators in the U.S., institutionalized Bitcoin as a mainstream investment asset. Despite the sustained interest in Bitcoin, the asset’s market performance has largely been disappointing.
While it rose to highs of $48K following the ETF approval, a steep drop took prices down to lows of $40K. At the time of press, Bitcoin is selling for $40,735 apiece, according to data from CoinMarketCap.
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