Institutional investment in Bitcoin ‘happening now’

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

Speaking on the CNBC program “Scream box”, the former White House Communications Director highlighted recent developments such as the entry of US pension funds into the crypto market, pointing to the State of Wisconsin Investment Board’s investments in BlackRock iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC).

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According to recent US Securities and Exchange (SEC) filings, the board allocated US$170 million to these trusts, signaling a significant shift in the 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 hope other pension funds will announce it.”

Scaramucci attributed this growing interest to regulatory approvals, which alleviated the concerns of large-scale institutional investors.

With regulatory hurdles eliminated, institutions now feel more comfortable including Bitcoin in their long-term tactical asset allocation strategies. If you are not long Bitcoin, you are essentially short Bitcoin, especially considering BlackRock’s stance on incorporating it into their strategic plans.

Anthony Scaramucci, founder of SkyBridge Capital

The momentum behind institutional adoption is evident from the disclosure of nearly 1,000 large investors who hold US Bitcoin spot ETFs.

Scaramucci x Saylor

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

Previously, he also called it an “investor capitalization machine,” comparable to Berkshire Hathaway.

He dismissed the notion of Bitcoin primarily as a medium of exchange, a sentiment echoed by MicroStrategy’s Michael Saylor.

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

According to him, Bitcoin’s optimistic outlook stems from its initial phase of adoption, which presents strategic advantages for investors willing to navigate its risks and volatility.

“Sometimes when you arrive early, you get a lot of bumps and scrapes. But I think it’s worth being at the beginning of Bitcoin, and I think we’re still at the beginning of 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 venturing into the Bitcoin market. He emphasized the need to understand the underlying principles that drive Bitcoin’s value proposition beyond just reading its White paper.

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

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

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