Bitcoin (BTC) enthusiasts have long anticipated the moment when institutional interest in the digital currency would surge, potentially propelling it to new highs. According to BitGo Chief Mike Belshe, that moment is now imminent, and it could boost the demand for the digital asset.
Mike Belshe is Optimist
In a recent interview, Belshe criticized investors who exhibited shaky resolve during recent market corrections. He emphasized the significance of resilience in the face of volatility, stating, “If you can’t handle a 20% dip, you’re definitely unprepared for a 600% upsurge.”
Belshe’s optimism stems from the increasing number of institutions allocating capital towards Bitcoin. He noted the entry of smaller hedge funds into the market, with larger hedge funds expected to follow suit.
He added:
“We have observed the entry of smaller hedge funds, with larger hedge funds set to follow suit. Pension funds are showing interest, and endowments are already actively participating.”
Demand to Increase Due to BTC ETFs
One significant avenue for institutional investment in Bitcoin is through Exchange-Traded Funds (ETFs) which were approved by the Securities and Exchange Commission (SEC) in January. While some institutions like Vanguard have decided not to embrace Bitcoin ETFs, citing extensive due diligence processes and consultations with investment committees, momentum is building as per Belshe.
CEO of BitGo stated:
“With an ETF now accessible, it will take some time for investment committees to deliberate. However, the momentum seems to be building up now, expected to continue through the summer. If history repeats itself, we might see Bitcoin reach $80K by May.”
Major entities like LPL Financial Holdings have taken months to conduct thorough due diligence on Bitcoin ETFs, emphasizing the importance of observing their performance in the markets. The risks involved were underscored, particularly given the closure of over 250 ETFs, including some involving digital assets, in 2023.
Belshe shed light on the lengthy approval processes required for firms to engage with Bitcoin ETFs through investment committees. However, he suggested that most firms would have completed these procedures by the summer. This timing aligns with expectations for a rise in institutional demand for Bitcoin ETFs, potentially leading to increased capital inflows into the bitcoin markets.
Bitcoin Predictions
Following the approval of spot BTC ETFs and increasing interest shown by institutional investors, multiple millionaires have put a heavy price tag on bitcoin for the short to long term. Recently, renowned author and financial guru, Robert Kiyosaki, reaffirmed his belief that the leading digital asset could surge to $300,000 per coin by the end of 2024. The author of “Rich Dad Poor Dad” has been a big BTC bull, asking his followers to scoop as much as they can.
Morgan Creek Capital Management CEO Mark Yusko also sees BTC’s price at $150,000 post the upcoming Bitcoin halving and stated that the digital asset’s current “fair value” is $75,000.
Further, billionaire investor Tim Draper sees a revised target of $250,000 for bitcoin by 2025 while investor and CEO of Ark Invest, Cathie Wood has predicted that BTC can reach a staggering $1.5 million by 2030.
