PiCK
Summary
- Adam Back said institutional investors could drive Bitcoin’s next rally.
- Bitcoin investment has expanded from retail buyers to spot exchange-traded funds (ETFs) and is now moving toward professional asset managers.
- Some large investment banks are recommending that 2% to 4% of portfolios be allocated to Bitcoin, but institutional participation in the market has yet to begin in earnest.
Forecast Trend Report by Period
Institutional investors could drive Bitcoin’s next rally, according to Wu Blockchain.
Blockstream Chief Executive Officer Adam Back said in a recent interview that more investors will gain indirect exposure to Bitcoin through mutual funds, pension funds and insurance products. Companies that hold Bitcoin as a treasury asset could also contribute to increased investment.
Back said Bitcoin investment began with early retail investors mining the token and buying it directly, before expanding into spot exchange-traded funds. The next phase, he said, will bring broader investment through professional asset managers.
Some large investment banks are already recommending that 2% to 4% of investment portfolios be allocated to Bitcoin, he added. Even so, institutional participation in the Bitcoin market has yet to begin in earnest.
Uk Jin
