Institutional Bitcoin Adoption Is Only Just Beginning, According to Anthony Scaramucci
Andrew Throuvalas
Last updated: May 16, 2024 19:06 EDT
| 1 min read
Skybridge Capital co-founder Anthony Scaramucci believes that the entry of new players into the Bitcoin market is still in its early stages, as institutional adoption of the cryptocurrency is just beginning to gain momentum.
During an interview with CNBC on Thursday, Scaramucci stated that institutional adoption is currently underway and expects more pension funds to soon disclose their Bitcoin allocations.
Scaramucci explained, “Bitcoin now has the regulatory approval – that was the rate-limiting step for many large-scale institutions. Just remember, if you’re not long Bitcoin, then you’re possibly short Bitcoin.”
Leading up to May 15, nearly 1,000 large investors with over $100 million in assets disclosed owning at least one U.S. Bitcoin spot ETF in their portfolios. The State of Wisconsin Investment Board (SWIB) was one of these investors, revealing a $162 million allocation to the ETFs this week.
According to Scaramucci, institutions are cautiously exploring Bitcoin before including it in a “total tactical asset allocation index.”
Bitwise CIO Matt Hougan supported this perspective on Tuesday, predicting that institutions could allocate between 1% and 5% of their portfolios to Bitcoin as they gradually expose client funds to the cryptocurrency.
When asked why Bitcoin is attracting widespread adoption, Scaramucci categorized it as “digital gold” – a subset of investors who view the primary use case of Bitcoin as a store of value rather than a medium of exchange. MicroStrategy executive chairman Michael Saylor shares this belief, having previously referred to Bitcoin’s use case as a currency as “a distraction.”
Scaramucci concluded, “Sometimes when you’re an early adopter, you face obstacles, but I believe it is beneficial to be an early adopter of Bitcoin, and I believe we are still in the early stages of Bitcoin.”
Earlier this year, Scaramucci predicted that Bitcoin could reach $170,000 per coin by the end of 2025.
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