The co-founder of Morgan Creek Digital Assets, Anthony Pompliano, said that Bitcoin (BTC) will ultimately be in the portfolio of almost every institutional investor. He said that during an interview with CNBC on August 20. Larger investors will soon have the possibility to have exposure to the cryptocurrency market through Bakkt’s Bitcoin futures.
Institutions Invest In Bitcoin
Although Bitcoin has been falling during the last few days, there are crypto figures that consider that larger investors will have active participation in the market. Pompliano talked about how Bitcoin’s hash rate continues to grow. This is something that translates into improved network’s security and support.
At the same time, he talked about Bakkt and how infrastructure is being built around Bitcoin and the cryptocurrency market. Moreover, he suggested that Bitcoin could be adopted by every institutional investor.
About it, he commented:
“The more infrastructure that’s built around this, the more likely it is to never go away […] we’re at a tipping point now where Bitcoin is here to stay. It’s going to end up being in every institutional investor’s portfolio.”
Many analysts suggested that Bitcoin could be adopted as a store of value in times of financial volatility and uncertainty. There are several countries with negative interest rates. Individuals have to pay to hold their savings in the bank. Nonetheless, inflation remains low in Europe and it does not seem to be headed upwards. This is why the European Central Bank (ECB) decided to continue with the fiscal stimulus in the Eurozone.
Bitcoin is an asset that does not depend on any centralized authority. Moreover, the virtual currency cannot be controlled by any government in the world. In the case of a global economic crisis, Bitcoin and gold seem the most attractive assets for investors.
As mentioned before, the Intercontinental Exchange (ICE) released Bakkt that announced it is launching physically-settled Bitcoin futures contracts for large investors, including financial institutions. Furthermore, Fidelity Investments is also working in order to offer services to institutional investors that want to have access to the crypto market. Moreover, Bitcoin is expected to experience a new halving event that would reduce the new issuance of BTC to 6.25 BTC per block.
At the time of writing this article, Bitcoin is being traded around $10,215 and it has a market capitalization of $182 billion. In the last 24 hours, this virtual currency fell 4.54% dragging the whole crypto space behind it.
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