SkyBridge head predicts a surge in institutional adoption of BTC

What’s new? Anthony Scaramucci, the founder and head of the investment firm SkyBridge Capital, who previously also served as an aide to former US President Donald Trump, highlighted the growing acceptance of bitcoin by major financial institutions and pension funds. He attributed the growing interest in the first cryptocurrency to regulatory approval, which removes a key barrier for institutional investors to enter the market.

Material by CNBC

What else is known? Scaramucci believes that institutional adoption of BTC has already begun in full force and will accelerate rapidly in the coming quarters. He pointed to the recent announcement by Wisconsin authorities to invest in bitcoin and suggested that other pension funds will follow suit.

Last week, for example, the Wisconsin Investment Commission, which manages the state’s pension and other trust funds, reported investments in spot bitcoin exchange-traded funds (ETFs). Specifically, the commission holds $99 million worth of IBIT fund shares from BlackRock, the world’s largest investment company.

It is noteworthy that earlier, BlackRock began advising pension and sovereign wealth funds on investing in BTC ETFs.

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Scaramucci emphasized that with regulatory barriers removed, institutions feel more comfortable incorporating bitcoin into their long-term asset allocation strategies. He urged investors to scrutinize bitcoin, noting that a thorough understanding of its history and fundamentals often leads to increased confidence in its potential.

In addition, the businessman emphasized bitcoin’s role as a hedge against inflation in the face of large-scale issuance of additional fiat by the central bank, calling the asset digital gold. Other representatives of the traditional finance sector, including the head of BlackRock Larry Fink, voiced a similar viewpoint earlier.

SkyBridge Capital started working with BTC back in November 2020, at that time many financial institutions looked at it with skepticism. However, Scaramucci noted that many of these organizations are now themselves using bitcoin and related investment products, including BTC ETFs.

Scaramucci expressed confidence in bitcoin’s long-term growth: its role in the global financial landscape will also grow as it becomes more popular among institutional investors. According to the senior executive, it is realistic to reach a market capitalization of $8 trillion in the medium term.

At the time of writing, BTC’s capitalization is $1,32 trillion, up 59% since the beginning of the year. The asset is trading at $66 933 on the largest crypto exchange Binance, having lost 0,42% over the day. At the same time, the weekly growth amounted to 7,3%.

At the beginning of the year, Scaramucci also allowed the possibility of bitcoin to grow significantly in the medium term. In his opinion, the price of BTC within 18 months after the halving will grow four times from the mark at the time of the event. The halving took place on April 20.