Entrepreneur, investor, and founder & CEO @VirtuseExchange
If you were a CEO of a large financial institution three years ago, publicly stating support for Bitcoin would be suicidal.
The media-driven narrative was that Bitcoin is only useful for criminals and drug dealers.
You have to understand, most of the people didn’t even understand Bitcoin. They heard the same blatant lies day in and day out. And they blackout everything else.
On top of all the misinformation in the media, Warren Buffett declared that Bitcoin is “rat poison squared.” His partner, Charlie Munger, said it was like “trading dead baby brains.” And Jamie Dimon, CEO of JPMorgan, the largest US bank, stated that he would fire anyone who was caught trading it.
Well, the narrative has changed.
And many others are changing their minds too.
Here is a list of other 15 investors and institutions that are firmly bullish.
Even JPMorgan conceded. According to Fortune, JPMorgan released a note last week that now states their analysts believe Bitcoin could double or triple in price.
First and one of the most notable converts is billionaire hedge fund manager Paul Tudor Jones. Tudor has said that Bitcoin in 2020 reminds him of gold’s role in the 1970s. His $22 billion hedge fund has invested between 1 and 2 percent of its assets in Bitcoin futures contracts.
Social Capital founder Chamath Palihapitiya, a self-proclaimed “disciple” of Warren Buffett, says Bitcoin is the best financial hedge against an uncertain world economy. He urged people to invest at least 1% in the asset.
Cathie Wood is the most successful investor over the past five years. Her team at ARK recommends an allocation to Bitcoin, ranging from 2.55% to 6.55%.
Multi-billion dollar institutions are now allocating 9-figures to Bitcoin. Stone Ridge, a $10 billion asset manager, now owns $115 million in Bitcoin.
Nasdaq-listed Microstrategy raised Bitcoin holdings to $425 million after the second purchase. Bitcoin held by the company is serving as the primary treasury reserve asset, almost entirely replacing US dollars.
Mode Global Holdings, a London Stock Exchange-listed company, has recently announced that they will put 10% of their cash reserves in Bitcoin to protect themselves against currency debasement.
The largest digital asset investment manager, Grayscale, saw record inflows of $1 billion in the third quarter and now has almost $6 billion in total assets. Grayscale’s Bitcoin (BTC) Trust is on track to reach 500,000 BTC by the end of 2020.
Fidelity also added its establishment name and star power to the new asset class. They successfully launched cryptocurrency custody offerings for institutional investors in 2019. In August 2020, they launched its first Bitcoin fund, and recently, they suggested investors increase their Bitcoin allocation to 5% or more.
Intercontinental Exchange, the trading colossus that owns the New York Stock Exchange and other global marketplaces, formed Bakkt. The company, backed by Microsoft and Starbucks, aims to make cryptocurrency safe for your retirement fund, and maybe retail.
Goldman has emerged that they are considering its own crypto asset, most likely a stablecoin. The bank said that there had been an “uptick in interest” with the bank’s institutional clients when it comes to crypto, adding that “it feels like there is a resurgence of interest in cryptocurrencies.”
DBS Bank, the largest bank in Southeast Asia by assets, is getting ready to launch a new digital asset exchange. This is a big deal because it shows that crypto has gone mainstream in Asia.
PayPal has recently entered the cryptocurrency game too. The technology company will allow users to buy and sell Bitcoin and other cryptocurrencies. PayPal has more than 345 million users, 25 million merchants, and is the 20th largest “bank” by deposits.
Payments platform Square has purchased $50 million in Bitcoin. Jack Dorsey, CEO of Twitter and Square, has long been a proponent of Bitcoin, saying in 2018 that he believes it will eventually become the world’s single currency within the next decade. Dorsey, who also owns an undisclosed amount of bitcoin personally.
Although different entities, central banks belong on this list too. They have long exercised influence over Wall Street, and they are not oblivious to what is going on here. Whether it is the Chairman of the CFTC talking positively about Bitcoin and Ethereum, the ECB launching a proposal for a digital euro, or it is China testing a centralized digital currency in Shenzhen, they are all paying attention. An easy first step would be to begin putting Bitcoin in their central bank reserves. If that happens in a major country, it will set off a global game of FOMO.
Mahatma Gandhi’s once said:
“First they ignore you, then they laugh at you, then they fight you, then you win.”
You have to imagine that every large bank is holding executive meetings about Bitcoin. It is also easy to imagine large family offices are already getting exposure to Bitcoin without announcing it to the world.
Yes, we have come a long way since the view of drug dealers and criminals.
But Bitcoin hasn’t won yet.
Let’s not forget that the Bitcoin win is not as another asset on Wall Street.
The financial system is broken and built a world of inequality.
The goal is to disrupt the status quo and use technology to create a better, more equitable world.
Then we’ll all win.
In the meantime, I suspect we’ll just continue to HODL.
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