Bitcoin institutional investing ‘happening now’

SkyBridge Capital founder Anthony Scaramucci is doubling down on his belief that institutional adoption of Bitcoin (BTC) is in full swing and poised to accelerate significantly in the coming quarters.

Speaking on CNBC’s “Squawk Box,” the former White House Communications Director highlighted recent developments such as U.S. pension funds entering the crypto market and the Wisconsin State Board of Investment’s investment in BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust. pointed out the investments. (GBTC).

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According to recent filings by the US Securities and Exchange (SEC), the board allocated $170 million to these trusts, signaling a significant shift in institutional perception of Bitcoin’s role as a strategic asset.

“I think institutional adoption is happening now,” Scaramucci said. “The State of Wisconsin announced. “We expect other pension funds to make a statement as well.”

Scaramucci attributed this increased interest to regulatory approvals that eased the concerns of large-scale institutional investors.

With regulatory hurdles removed, institutions now feel more comfortable incorporating Bitcoin into their long-term tactical asset allocation strategies. If you’re not long Bitcoin, you’re actually short Bitcoin, especially given BlackRock’s stance on incorporating this into their strategic plans.

Anthony Scaramucci, founder of SkyBridge Capital

The momentum behind institutional adoption is evident from the announcement of nearly 1,000 major investors holding US Bitcoin spot ETFs.

The majority of the nation’s largest hedge funds (52%) are betting #Bitcoin

With the launch of Bitcoin ETFs, institutions have no reason to say no to hard money🚀 pic.twitter.com/FI3UfBssIP

— Sam Baker (@makromule) May 17, 2024

Scaramucci vs. Saylor

Scaramucci sees Bitcoin primarily as a store of value, aligning himself with the “digital gold” narrative.

He has also previously called it a “compounding machine for investors” comparable to Berkshire Hathaway.

Bitcoin is the Berkshire Hathaway of the 21st century; For investors, compounding is a wealth-creating machine. It was never “too late” to buy Berkshire shares. It’s still too early for Bitcoin.

— Anthony Scaramucci (@Scaramucci) March 2, 2024

He rejected the idea that Bitcoin is primarily a medium of exchange, a sentiment also echoed by MicroStrategy’s Michael Saylor.

Looking ahead, the former Goldman Sachs banker remains optimistic about Bitcoin’s long-term growth potential. He believes even conservative forecasts could lead to a significant market value that could rival that of gold.

According to him, Bitcoin’s bullish outlook stems from its early adoption phase, which offers strategic advantages to investors looking to manage their risks and volatility.

“Sometimes when you arrive early you get a lot of bumps and scrapes. “But I think it pays to be early in Bitcoin, and I think we’re still early in Bitcoin,” he said.

Despite the positive momentum, Scaramucci, author of “From Wall Street to the White House and Back,” emphasized the importance of education and due diligence for investors attempting to enter the Bitcoin market. He emphasized the need to understand the fundamental principles that drive Bitcoin’s value proposition beyond simply reading its whitepaper.

Scaramucci’s confidence in Bitcoin’s future is underlined by SkyBridge’s early adoption of the cryptocurrency, despite initial skepticism from some financial institutions. He noted that many of these institutions have since adopted Bitcoin and related investment products such as ETFs.

As institutional adoption continues to gain momentum, Bitcoin’s value proposition will become increasingly apparent to a broader audience of investors, Scaramucci said.