According to the Executive Director at BC Group, Dave Chapman, institutions are not coming to Bitcoin, but are already here. BC Group is a FinTech firm with a diversified portfolio of businesses in marketing, communications and technology solutions. He tells reporters at CNBC that,
Digital assets aren’t going away and they’re only getting stronger.
The recession hit the economy due to the COVID-19 pandemic has caused significant distrust in the current financial system which is struggling to keep the credit line flowing but at the cost of a large federal debt. The economics of Bitcoin and the future prospect of Ethereum offer greater potential than investing in large corporations. However, he adds,
There is no denying that digital assets are volatile. But that is nothing new. But it also creates a significant amount of opportunity.
To him, aversion due to volatility is more like ‘entertainment’ because the big picture has always been bright. Bitcoin and Ethereum are not only the best performing asset this year, but also have been throughout the decade.
Big Picture Projected By Bitcoin
Currently, Bitcoin is up over 70% from YTD, at the same time, Ethereum is up 232%. Furthermore, he does not fail to acknowledge that currently, investment in digital assets is only complementing one’s currency and commodity portfolios. Nevertheless, they are being increasingly adopted in this small capacity which is definitely positive. He says,
We’ve positioned ourselves to be ahead of the curve and find global adoption of digital assets.
The full link of the video can be found here,
The return profile for institutions allocating 0.5-3% of their investments in Bitcoin has yielded higher cumulative returns compared to non-allocation. Gabor Gurbacs, the Digital Assets Director at VanEck, tweeted,
Run the numbers, be humble and consider #Bitcoin… I ran the numbers and the math checked out.
Returns on Portfolio Allocation to Bitcoin [BTC]The annualized percentage return of the S&P 500 is 13.09% and that of bonds is significantly lower. However, a diversified portfolio with stocks and bonds with a small Bitcoin allocation as low as 0.5% yields a significantly higher return, with such a low risk and reward ratio, it is unlikely that institutions would miss out on the opportunity.
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