Institutions Piling Into Bitcoin To Stay Rich, Not Get Rich?
Ari Paul, co-founder and chief investment officer of BlockTower Capital believes nstitutional investors are getting into Bitcoin to stay wealthy – not to get wealthy
Institutions Aren’t Piling Into Bitcoin To Get Rich, They’re Piling Into Bitcoin To Stay Rich, Says Ari Paul
W’e’ve been talking with a lot of billionaires in the financial world. It’s such an interesting shift in mindset. They are now thinking defensively. They are thinking enough of their billionaire buddies have 10% of their net worth in Bitcoin. If they don’t, they are thinking ‘Man, if Bitcoin does another 20X, I’m not invited to the parties anymore. I’m not in that rich club’, wherever they are in the hierarchy. So now they are thinking, ‘I need a passive allocation. I need 10% of my net worth in this just to keep up, just in case.’ It’s not about getting rich, it’s now about staying rich.’
The BlockTower Capital chief investment officer says the amount data indicating high net worth investors are entering the market is overwhelming.
‘We’ve seen tons of Bitcoin moving off exchange[s]. Every data point on this is massive institutional buying. You have some quantitative data. Things like inflows into Grayscale, which are inflows into the closed-end vehicle. That was I believe $3.8 billion in Q4 which was close to everything that have flown into Grayscale prior to that.’”