The institutional interest in bitcoin and other digital assets is on the rise, signaling a significant shift in the market.
Roundtable anchor Rob Nelson, David Duong, Head of Institutional Research at Coinbase, Kelly Kellam of BitLab Academy, and Noah Newton, Founder of Moby Media, discussed the evolving role of institutional investors and their impact on the market. As institutional players like Morgan Stanley begin to advise clients on bitcoin, the landscape is set for major changes .
Nelson kicked off the discussion by pointing out the difference in how institutional investors approach market fluctuations compared to retail investors. He noted, “Institutional investors are already taking this all in,” reflecting their broader horizon and strategic patience. This approach could significantly influence the market’s size and movement in the coming months. Goldman Sachs, for example, recently scooped up nearly half a billion dollars worth of Bitcoin via ETFs after saying it wasn't an investable asset .
Coinbase's David Duong emphasized the increasing acceptance of bitcoin as a macro asset among institutional investors. He noted that what once required convincing is now taken for granted. “I think that a lot of institutional investors are starting to take that for granted,” Duong said, pointing to the shift in perspective. The introduction of ETFs has played a crucial role in this transition, making it easier for institutions to participate in the market.
Kelly Kellam added that the market is entering a new era, particularly with the approval and rapid deployment of bitcoin spot ETFs. He highlighted the significance of institutional participation, saying, “We’re at the early adopter stage of institutions.” This phase is crucial as institutions begin to navigate the regulatory landscape with more confidence.
Noah Newton shared his optimism for the future, especially as banks begin to advise clients to allocate a portion of their portfolios to bitcoin. He believes this will lead to unprecedented market growth. “Most of the world’s wealth is stored in sovereign and pension plans,” Newton said, underscoring the potential impact of even small allocations to crypto.
