A great narrative in recent months is the introduction of institutional capital to the Bitcoin space.
It started in 2020 with Paul Tudor Jones, a billionaire Wall Street investor who put a small percentage of his fund in BTC futures. He did this in preparation for the May halving, writing that Bitcoin's shortage will make it the "fastest horse of the race" in a world where inflation is rampant.
Jones' peers on Wall Street followed suit.
Many macro investors, who are known for making asymmetric bets like BTC and crypto, have bitten into the Bitcoin pill. Family offices are also beginning to make allocations to Bitcoin as they look to diversify from overvalued assets.
However, not all of Wall Street is involved in Bitcoin.
Case in point: Fidelity Investments alone has more than $ 3 trillion in assets under management, which is three times the market capitalization of the cryptocurrency space.
Guggenheim Investments CIO Scott Minerd, who recently caught the Bitcoin bug, said in a recent interview that more investors should allocate a small amount of their portfolio to this space.
Bitcoin should be bought by most investors
Speaking to Bloomberg in an interview published Friday, Minerd commented that most, if not all, investors should have a small percentage of their portfolio in Bitcoin. He said:
“2% of your portfolio will be 20% of your portfolio before this ends. So you don't want to be overweight, but certainly an allocation of one% of your portfolio seems like a wise move. "
The comment basically implies that BTC could appreciate 1,000% in the coming years to bolster Bitcoin's small allocations to larger ones.
(embed) https://www.youtube.com/watch?v=wSWcMZdHJ5Q (/ embed)
This is similar to comments made by investors like Tudor Jones. They say that having Bitcoin in your wallet is a rational gamble due to the extreme overpricing in other asset classes and the large amount of inflation that takes place in the economy and financial markets.
However, Minerd did issue a warning in his interview stating that he believes Bitcoin is currently in a "speculative frenzy" or short-term mania.
He specifically pointed to the fact that cryptocurrency exchanges like Coinbase and others are overloaded to the point where they cannot seriously trade and have had to limit some of the demand.
However, Bitcoin may not have stopped yet. As previously reported, the cryptocurrency maintained a key level of technical support during Monday's correction.