One of the Middle East’s sovereign wealth funds, Qatar Investment Authority (QIA), is rumored to be investing $500 billion in Bitcoin, according to recent speculations on social media platform X. This article explores the possibility of such an investment, as well as the regulatory environment surrounding it.
The rumor of Qatar Investment Authority’s involvement began in December last year when Bitcoin extremist Max Keiser posted a shocking announcement on X, claiming that QIA may invest up to $500 billion in Bitcoin. This news quickly caused a stir in the cryptocurrency market. Keiser stated, “If true, thank you, Keiser!” in response to Anthony Scaramucci, the founder of SkyBridge Capital, who also joined the discussion. Their interaction seemed to lend credibility to the rumor, and it ignited enthusiasm in the cryptocurrency market.
Indirect supporting evidence for the rumor came from Qatar’s official private jet, which was discovered flying to the Bitcoin Atlantis conference held in Madeira earlier this month. This move led to speculation that government-level investment in Bitcoin may become increasingly plausible.
Although these speculations sparked widespread discussions in the market, when the media contacted Qatar Investment Authority (QIA) to inquire about the rumor, the institution’s representatives remained silent about specific investment measures. However, they reiterated their focus on blockchain technology rather than direct cryptocurrency investment.
This development has prompted many industry experts to reevaluate the strategic value of Bitcoin at the national level. Talal Tabbaa, CEO of CoinMENA, pointed out in an interview that even sovereign nations might consider Bitcoin as part of their financial strategy. He stated, “Even sovereign nations might consider having Bitcoin as part of their financial strategy.”
Regarding the regulatory environment and the possibility of investment amounts, it is worth noting that QIA reports manage assets of approximately $475 billion, making it unlikely to spend more than that amount.
Compared to other major holders in the current cryptocurrency market, such as MicroStrategy, which holds about 205,000 BTC valued at around $14 billion, this investment is also likely to be very challenging to execute as a one-time investment of $500 billion would require corresponding sellers for each acquisition.
Furthermore, an investment equivalent to nearly 40% of Bitcoin’s current total market value seems impractical in practice and would likely take several years to accomplish, even for the largest cryptocurrency wallet, Binance, which holds only about $14 billion worth of BTC.
On the other hand, Qatar has not yet legalized cryptocurrencies. The Qatari central bank has defined Bitcoin transactions as illegal due to the volatility of cryptocurrencies, potential involvement in financial crimes, and the lack of underlying assets. Unless legislation is passed, there may be obstacles.
However, looking ahead, the Middle East and North Africa region, especially the United Arab Emirates and Bahrain, have begun taking steps to position themselves as global cryptocurrency hubs. For example, the Dubai Virtual Asset Regulatory Authority (VARA) became the world’s first independent cryptocurrency regulatory body, and Abu Dhabi is actively promoting Bitcoin mining and related activities. Therefore, Qatar’s official policies on cryptocurrencies may gradually change in the near future.
Further reading:
Dubai Gives Green Light! XRP and TON Approved by the Financial Services Regulatory Authority (FSRA), DIFC Qualified Companies Can Provide Trading Services
Related Reports
Why Hasn’t Bitcoin Experienced a Major Pullback and Is There Still a Chance to Get on Board?
Bitcoin Spot ETF Market Share: Grayscale GBTC Plunges from 99.5% to 47.9%! Outflow Breaks $11.1 Billion
A Gift for Taiwan: “Bitcoin and Virtual Asset Development White Paper” Reveals Four Major Importances of BTC to Taiwan