In the mainstream space, one asset has been steadily gaining traction among fund managers worldwide: Bitcoin. Recognized for its potential to diversify portfolios and offer unique opportunities, Bitcoin is increasingly becoming the go-to asset for strategic allocation.

The Report from QCP Capital

A recent report from QCP Capital sheds light on this growing trend, suggesting that fund managers are adding Bitcoin to their clients’ portfolios for more diversification. Beyond adding Bitcoin to their investment mix, fund managers are exploring structured products such as Accumulators and FCNs, indicating a strong desire to incorporate Bitcoin into traditional investment strategies.

What’s particularly interesting is the rise in requests for spot BTC ETFs, as noted by wealth desks at major banks. This demand from clients shows a significant shift in investor opinion towards Bitcoin, with more institutional and retail investors recognizing its value proposition.

Increased Institutional Demand

Bitcoin’s recent price surge of over $70,000 has created more hype around the asset. The London Stock Exchange has revealed its plans to introduce Exchange-Traded Notes (ETNs) for Bitcoin and Ethereum in May. This event adds even more fuel to the fire and may contribute to Bitcoin’s bullish momentum.

Despite the volatility of the crypto market, fund managers remain bullish on Bitcoin. QCP Capital predicts Bitcoin to maintain its trajectory, with the potential to surpass the $100,000 level in the near future. Since Bitcoin offers better returns than traditional assets, it becomes an attractive option for investors looking to diversify.

Fund managers are experimenting with various strategies to profit from Bitcoin. Leveraging the heightened BTC Spot-Forward Basis might be a viable option in the market. Additionally, launching Accumulators allows participants to buy Bitcoin at a lower price, leaving more room for profits.

Bitcoin – Becoming a Mainstream Asset

The upcoming debut of Bitcoin and Ethereum ETNs on the London Stock Exchange marks a significant moment for the mainstream adoption of crypto. While these ETNs will be limited to professional investors due to regulatory constraints, their introduction highlights the growing acceptance of crypto in the mainstream markets.

Bitcoin’s rise as the preferred asset for diversification among fund managers reflects a major shift in the investing space. With its ability to offer better diversification and higher potential returns independent of traditional assets, Bitcoin continues to solidify its position as a strategic allocation in investment portfolios worldwide.

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Filed under: Bitcoin - @ March 28, 2024 9:00 pm