What is your explanation for 1.5BB being in BITO then? (which is obviously an inferior product) Why has fidelity been Bitcoin champions for a decade? Why has CME future volume just surpassed Binance future volume? (that is all institutions) Your bias is stopping you from seeing what is right in front of you
My Lambo would say otherwise. A nothing burger that went from $400 to 70k in what 7 years? Institutions were stupid not to invest in it...now they are trying to play catch-up with egg on their face. I'm sure there are plenty of hodlers willing to part with their coins at the right price.
Bitcoin is gradually developing a growing consensus that it's a digital gold. Plus the new generation cares a lot more about digital assets for the simple fact that it is fcking comfortable to own it. "Why would i own physical gold instead?" - is the question asked by 15 year olds now. And they are the future. I mean, gold is just as BS but still it has a high value. And god forbit, if we should ditch cash and go all digital with currency (USD, EUR etc). Every transaction can be traced. THEN you'll feel the real power of cryptos. That's exactly what it is. A new age cash. I even think it was created for that very reason, lol. Because we're moving away from physical cash eventually.
If I had to model if somebody liked bitcoin, the number one thing to use would be simply age. It is very hard for older people to wrap their head around this not because they’re dumb or anything. Obviously they’re probably smarter and obviously have more experience. it’s just that it’s so different from the world they grew up in. An older person will say how can you own something that you can’t physically hold. And a younger person would say why the hell would you actually hold something that you can actually hold lol very much along generational lines.
Most institutional investors can't buy Bitcoin directly because their corporate charters won't allow them to. It's no more complicated than that. It has nothing to do with them thinking Bitcoin is stupid. Even if they thought Bitcoin was the greatest investment in the history of mankind, those managers still couldn't purchase BTC with clients' money because the investment company's Articles of Incorporation only allow the company representatives to invest in very specific classes of instruments. And that's the way it should be. If you invest in a REIT, you expect your money to be invested in real estate, not biotech stocks or precious metal mining operations. A Bitcoin spot ETF is so important because it allows financial institutions that are already authorized to invest in ETFs to participate in the Bitcoin market. And that's why you see some of the biggest financial institutions like Blackrock, Fidelity, etc. trying relentlessly to get their spot BTC ETF applications approved. Bitcoin is not a company and that's why there are no dividends or shareholders. Bitcoin is not legal tender because it's not a government-issued currency. Bitcoin is not a bank, nor is it stored in a bank, and that's why there's no FDIC insurance. Your mindset is stuck in traditional finance which is why you're struggling to understand the basics of decentralized digital property like Bitcoin.
Its mostly an issue of style drift. CTA's need to trade futures, etc. An ETF causes D1 market makers to buy futures or cash BTC to hedge.
very well said. I will just add that… Certainly there are institutional investors that think bitcoin is stupid. But a lot of his institutional investors want some exposure to this thing how could they not? I know this because I talk to them every day. It’s been objectively the best performing asset in any longer timeframe you could find, but as you said Barron, they literally can’t right now. Too much legal risk and too many headaches. A spot bitcoin ETF just changes that in an instant.
Oh, I'm sure they are definitely out there, but it's not because they TRULY think it's stupid. They just don't understand it, so they revert to calling it derogatory names because it's such an easy way to deflect the conversation to something else. In my direct circle of friends, there are operators of financial advisory firms, owners of insurance companies of all types, commercial property investors, land developers, surgeons, attorneys, etc. It's a great group of intelligent people, but not a single one of them understands how the Bitcoin network functions. Remember: This is the definition of Bitcoin as it applies to the average person, regardless of how wealthy or smart they are: Bitcoin is everything you don't understand about money combined with everything you don't understand about computers. So what I've learned is there are a lot of people who are brilliant in their respective fields, but they have very little, if any, knowledge about computers and information technology. All of the friends in my circle I just described outsource their personal and business technology needs to third parties that specialize in IT. In other words, these guys couldn't troubleshoot a technology problem at home or work if their lives depended on it, and in that context, they have no problem admitting that. They gladly pay "propeller heads" and "nerds" to implement and maintain any software and hardware technology, but unfortunately, that's why they'll NEVER have the underlying competency to be able to understand or appreciate Bitcoin for what it is. That logic also applies to the greatest minds in finance. Men like Warren Buffett and Charlie Munger know traditional finance like the back of their hands, but their knowledge of computer networking and information technology is so minimal that they'll never be able to fully grasp the technological miracle that Bitcoin represents. So when they are asked about it, they just revert to calling it derogatory names to deflect from the fact that they know little to nothing about how the Bitcoin network works and much less as to why it's the future of wealth preservation and appreciation.
Because 2010 BTC at 32 bucks topping screamed "we are going to 70K". Would you mind telling me the next big thing? I would invest a 100 or a 1000 bucks in it. Oh yeah, you probably forgot those 7 or so times when it lost more than 70% from its top. Institutions love the roller coaster type of stocks. /s
Said the idiot who never been hit on his head with a gold bar. At least you can use it as a door stop, you know beside that few hundred industrial usages. But I see your point, so see mine: Just because X is over/under valued that doesn't mean BTC can not be. BTC is like diamond, not rare and hugely overvalued. And similar ones can be easily made.