Ryze Recap 6/1: Institutional Interest in Bitcoin
The biggest news in Bitcoin, in 2 mins or less. Presented by Ryze 🚀
It’s Monday, June 1st. Here’s a little Monday Motivation to kickstart your day:
“The time is always right to do what is right.” – Dr. Martin Luther King, Jr.
We’ve got a quick one for you today about institutional investors— banks, pension funds, university endowments, hedge funds, and investment advisors.
1. Institutional Interest in Bitcoin: A Two-Sided Picture
For years now, Bitcoin bulls have talked about the day that institutional money will start piling into Bitcoin, and Bitcoin goes to the moon and we can all finally buy our Lambos.
We touched on institutional money in last Friday’s Recap, with Grayscale seeing record inflows into its Bitcoin Investment Trust, GBTC. It isn’t just Grayscale that’s seeing big money come in. Blockforce Capital, Stack Funds, and Galaxy Fund Management, three hedge funds investing in Bitcoin, have reported increased interest from “wealth [managers], independent RIAs, and institutions.”
Why it matters:
All three firms cite the current macroeconomic environment as the reason for increased interest in Bitcoin from institutions. Unlimited money printing and global economic uncertainty fall in line with Bitcoin’s digital gold narrative. Here’s an exclusive deep dive from Ryze.
The other side:
Regulatory uncertainty deters many institutional investors. In the Block’s recent survey of institutional players, 53% of respondents said regulatory uncertainty is what stops traditional asset managers from investing in Bitcoin. Over half said that regulatory clarity and regulated products would encourage more institutional investment in the space.
The spin:
JP Morgan, perhaps the most vocal institutional critic of Bitcoin, has quietly started making moves in the industry. JPM has taken on Coinbase and Gemini, two major Bitcoin exchanges, as clients. The banking giant’s shift from anti-Bitcoin over the last few years to being Bitcoin-friendly sends a confident signal to other institutions.
That’s all for today! Have a great week, and we’ll be back tomorrow with another Ryze Recap.