As you probably know by now, institutional players are one of the main ingredients of the crypto and blockchain mass adoption.
This has been one of the most important goals that the crypto industry has set, and so far, there have been a lot of moves made in this direction.
This is why institutions are buying Bitcoin.
Now, it’s been revealed that Ari Paul, the co-founder and chief investment officer of crypto-asset investment firm BlockTower Capital, said that institutional investors are increasingly buying Bitcoin to protect their wealth.
During a new interview, he said that large investors are taking a defensive approach when they are putting their money in Bitcoin.
“We’ve been talking with a lot of billionaires in the financial world. It’s such an interesting shift in mindset. They are now thinking defensively. They think enough of their billionaire buddies have 10% of their net worth in Bitcoin. If they don’t, they are thinking ‘Man, if Bitcoin does another 20X, I’m not invited to the parties anymore. I’m not in that rich club’, wherever they are in the hierarchy. So now they are thinking, ‘I need a passive allocation. I need 10% of my net worth in this just to keep up, just in case.’ It’s not about getting rich, it’s now about staying rich,” he said as cited by the Daily Hodl.
He also made sure to explain the fact that the amount of data indicating high net worth investors are entering the market is overwhelming.
“We’ve seen tons of Bitcoin moving off exchange[s]. Every data point on this is massive institutional buying. You have some quantitative data. Things like inflows into Grayscale, which are inflows into the closed-end vehicle. That was I believe $3.8 billion in Q4 which was close to everything that has flown into Grayscale prior to that,” he said.
At the moment of writing this article, BTC is trading in the green, and the king coin is priced at $31,150.55.