CEO of Greyscale Investment Sonneshien shared with Bloomberg that it expects increased interest from institutional investors to participate in cryptocurrency investment.
The newly appointed Chief Executive officer told Bloomberg, “we’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions, and endowments,”
One of the vital reasons why Bitcoin prices are appreciating is because institutional investors are dipping their toes into the market, not just from an investment perspective, but also from a corporate cash perspective. For example: as many of us know MicroStrategy has converted all of its cash in the balance sheet into Bitcoin. Square has similarly converted 1% of assets and 2% of its cash into Bitcoin.
Not a long time ago, Morgan Creek was the pioneer in getting pension fund to invest in a hedge fund, as the then-new asset class started to meet with success more fund managers and advisors started following the coattail. According to Evertas, 26% of institutional investors including pension funds are set to increase their level of investment in crypto assets by 2025! Last Thursday, the successor to founder Barry Silbert, Michael Sonneshien shared with Bloomberg “the size and allocation they (pension funds) are making into the cryptocurrency as an asset class is increasing.”
This trend is important because according to a white paper by Informed Few in the seventies, something similar had happened. Many institutional and pension fund investors had started migrating to real-estate markets. If a similar trend were to happen, where more or less all institutional investors invested at least 5% of their assets into cryptocurrency, then according to the white paper, in relation to their current prices, prices of Bitcoin and other cryptocurrencies are going to appreciate by between 400k-500k! The paper cautions, that it may not happen anytime soon, but it bound to happen.
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