Institutional Buying May Fuel Bitcoin’s Next Rally, Blockstream CEO Adam Back Says
Institutional investors could drive Bitcoin’s next rally, according to Wu Blockchain.Blockstream Chief Executive Officer Adam Back said in a recent interview that more investors will gain indirect exposure to Bitcoin through mutual funds, pension funds and insurance products. Companies that hold Bitcoin as a treasury asset could also contribute to increased investment.Back said Bitcoin investment began with early retail investors mining the token and buying it directly, before expanding into spot exchange-traded funds. The next phase, he said, will bring broader investment through professional asset managers.Some large investment banks are already recommending that 2% to 4% of investment portfolios be allocated to Bitcoin, he added. Even so, institutional participation in the Bitcoin market has yet to begin in earnest.