Anthony Pompliano, co-founder of Morgan Creek Digital, says Bitcoin’s status is starting to change among traditional investors.
In an interview with Yahoo Finance, Pompliano says that the longer BTC continues to thrive and proves that opponents misrepresent demise, the more people will notice the remarkable rise in value over the past decade.
He points at the fact that JP Morgan is now providing banking services to crypto exchanges Coinbase and Gemini as a sign of things to come.
Bitcoin is not going away. You are beginning to see that many Wall Street investors are actually putting it in their portfolios. And they are also starting to have some track record for these exchanges or companies so that they can see the financial performance.
So in the end, I think banks really can’t ignore this space. “
Pompliano says he sees institutional investors increasingly see Bitcoin as a hedge against the volatility of other financial markets.
“About a year ago it started to become something like, oh, that hasn’t died yet? Maybe I should do a little more work and learn about it. What we’re seeing now are two separate groups of people. Some who’ve done that work and now So you see someone like a Paul Tudor Jones come in and say he has 1-2% of his portfolio, and he’s worried about inflation considering all the printing going on …
In the second bucket, you have a lot of institutional investors sitting there saying, “Look, I’m just doing asset allocation and this asset is very unique because it has not correlated with other assets for a long period of time. It is able to improve my Sharpe ratio and based on a risk reward point of view can achieve a significant improvement in my performance by allocating only a small amount of capital. “
Pompliano says he is not rejecting his personal forecast of BTC’s price path until 2021.
“My guess is that we will continue to grind over the next 18 months or so, and I expect this to be the best performing from this crisis. I said that I think Bitcoin will reach $ 100,000 per BTC by 2021, which is more than a 10x increase in a relatively short period of time in the traditional financial world. “
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