Speaking at a conference in Miami on Wednesday, Galaxy Digital founder Mike Novogratz detailed how he expects the next wave of Bitcoin adoption to play out – through registered investment advisors.
The Context Summits event, a two-day networking event sponsored by Galaxy Digital, Fidelity Digital Assets, Grayscale, TD Ameritrade, Morgan Stanley and several other investment banking giants, brings together qualified investors, hedge funds, endowment and foundation allocators.
With only 5% of endowments invested in Bitcoin, Novogratz says that pensions are slow to move into the alternative asset. To tip the dial and propel Bitcoin to its full potential as the world’s “digital gold”, Novogratz says the industry will need more robust infrastructure.
According to a new report released by Novogratz’s crypto bank Galaxy Digital, entitled “Digital Diversification: Bitcoin’s Role in the Modern Portfolio”, Bitcoin will likely flex its muscle against a backdrop of global uncertainty, more quantitative easing, more debt, shifting trade, tariff and tax policies, swelling central bank balance sheets, and diminished purchasing power by national currencies.
“Bitcoin’s total market cap continues to grow, but still has tremendous room to expand compared to other global markets…
Billions of dollars of infrastructure investments have been made in the last few years to support bitcoin’s robust ecosystem and enable institutional investors to have the tools and opportunity to invest, trade, and instantly transact with billions of dollars in daily liquidity. Progress on this front includes regulated custody, physically settled futures contracts, and regulated options contracts.
From Goldman Sachs to Fidelity, to IBM and the NYSE/ICE, major financial institutions have made and continue to make sizable investments in the industry and verticals of bitcoin’s value chain.”
The report concludes that 2020 will see the acceleration of on-ramps and infrastructure for institutional investors as consumers also increase their use of Bitcoin for payments and cross-border transactions.
You can download the full report here.
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