Bitcoin’s Potential 600% Surge Catching Investors Off Guard, BitGo Chief Cautions
The escalating institutional interest in Bitcoin [BTC] could push the digital currency to new highs. BitGo Chief Mike Belshe pointed out that this surge in interest is reaching its peak and may provide a fresh impetus to the primary cryptocurrency.
During a recent interview with Bloomberg TV, the BitGo CEO criticized investors with shaky resolve who panicked amidst the recent market corrections, stating,
“This is an exceptionally favorable moment. As the saying goes, if you can’t handle a 20% dip, you’re definitely unprepared for a 600% upsurge.”
Belshe is optimistic about the potential for substantial gains as various types of institutions begin to allocate capital towards Bitcoin.
“We have observed the entry of smaller hedge funds, with larger hedge funds set to follow suit. Pension funds are showing interest, and endowments are already actively participating.”
Rise in Institutional Demand for Bitcoin ETF Expected by Summer
While some institutions have been slow to embrace Bitcoin ETFs, much of the delay has been attributed to extensive due diligence processes and prolonged consultations with investment committees for approval.
Earlier in February, Bloomberg disclosed that major entities like LPL Financial Holdings took three months to conduct thorough due diligence on the new Bitcoin ETFs.
Rob Pettman, LPL’s vice president of wealth management solutions, emphasized the necessity of this due diligence, remarking;
“We are keen on observing their performance in the markets.”
The report highlighted the risks involved, noting that over 250 ETFs, some involving crypto assets, shut down in 2023.
Belshe also alluded to the extensive procedures required for firms to gain approval to engage with Bitcoin ETFs through investment committees.
Furthermore, the BitGo Chief suggested that most firms would have completed these processes by the summer.
“With an ETF now accessible, it will take some time for investment committees to deliberate. However, the momentum seems to be building up now, expected to continue through the summer. If history repeats itself, we might see Bitcoin reach $80K by May.”
If this forecast materializes, a fresh wave of institutional interest in Bitcoin ETFs could lead to increased capital inflows into the crypto markets, prolonging the ongoing bullish cycle.