Initially envisioned as a P2P electronic cash system, Bitcoin‘s narrative has changed over time, and now, the asset is primarily viewed as an inflationary hedge against various fiat currencies.
Over the past few years, its store-of-value characteristics have taken flight, with many suggesting that incoming institutional investors can help solidify this position.
Ryan Watkins, Research Analyst at Messari, opined on this matter recently and highlighted the changes that may manifest once these types of investors show up in the space.
After Bitcoin’s latest display of survival amidst economical turbulence, prominent hedge fund manager Paul Tudor Jones had stated,
“Every day that goes by that bitcoin survives, the trust in it will go up.”
Tudor Jones also revealed that he had 1% of his wealth in Bitcoin at the moment. Keeping that as the standard allocation, Watkins estimated the capital flow in Bitcoin from different institutional investors with their respective Assets Under Management (AUM).
Analyzing the capital allocation from investors such as pension funds, mutual funds, endowments, foundations, family offices, sovereign wealth funds, and hedge funds, the following table was formulated. Read More