Morgan Creek Digital co-founder Anthony Pompliano says Bitcoin’s status among traditional investors is starting to change.
In an interview with Yahoo Finance, Pompliano says the longer BTC continues to thrive and prove naysayers predicting its demise wrong, the more people will take notice of its remarkable rise in value over the last decade.
He points to the fact that JP Morgan is now providing banking services to crypto exchanges Coinbase and Gemini as a sign of what’s to come.
“Bitcoin is not going away. You’re starting to see a lot of Wall Street investors actually putting it in their portfolios. And they’re starting to also have some track record for these exchanges or businesses, so they can see the financial performance.
So I think ultimately, what you’re really going to start to see is banks can’t ignore this space.”
Pompliano says he’s seeing institutional investors increasingly view Bitcoin as a hedge against the volatility of other financial markets.
“About a year ago, it started to be a thing like, oh, that hasn’t died yet? Maybe I should do some more work and get educated on it. Now what we’re seeing is two separate groups of people. Some that have done that work and are now gaining exposure. So you see someone like a Paul Tudor Jones come in and say he’s got 1-2% of his portfolio. And he’s worried about inflation given all the printing that’s going on…
In the second bucket, what you’ve got is a lot of institutional investors that are sitting there saying, ‘Look, I’m just doing asset allocation and this asset is very unique in that it, over a long period of time, has been non-correlated to other assets. It’s able to improve my Sharpe ratio and can actually drive on a risk reward standpoint a significant increase in my performance by only allocating a small amount of capital.”
Pompliano says he’s not wavering from his personal prediction on BTC’s price path through 2021.
“My guess is we’ll continue to grind up for the next 18 months or so, and I do expect it to be the best performer coming out of this crisis. I’m on record as saying I think Bitcoin will hit $100,000 per BTC by 2021, which is obviously more than a 10x increase in a relatively short period of time in the traditional financial world.”
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