Sovereign Wealth

Definition ∞ Sovereign wealth refers to investment funds owned and managed by a nation-state. These funds are typically established from state revenues, such as from natural resource exports, and are invested globally to generate returns for the benefit of the nation’s economy and citizens. Their investment decisions can significantly influence global financial markets.
Context ∞ The involvement of sovereign wealth funds in the cryptocurrency and blockchain sector is a topic of growing interest in financial news. Reports often detail the allocation strategies of these large state-backed entities, including their potential investments in digital assets or blockchain infrastructure companies. The cautious yet increasing participation of sovereign wealth signals a maturing acceptance of digital assets within traditional finance.