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Written by: George Prior
Investors should “follow the big money” as institutional funds flow into Bitcoin, says the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations.
The suggestion from Nigel Green of deVere Group comes as the first and biggest cryptocurrency by market capitalisation hits its 12-month high, despite other risk assets, including stock markets experiencing a dip.
Bitcoin jumped around 4% to $31,255 in trading, hitting its highest price since June 7 2022.
He says: “The latest bullish sentiment around Bitcoin, which has soared 21% within 24 hours, can largely be attributed to one of the world’s most influential fund managers (Blackrock) applying last week for what would be the US’ first Bitcoin spot exchange traded fund (ETF).
“We believe that this attempt has the best chance of regulatory approval and success out of all the attempts so far.
“Should it get regulatory approval, as we expect it will, it will be a landmark moment for crypto. We would then see a huge further surge in investment from institutional investors, which would have the effect of driving-up crypto prices across the board.”
He continues: “Bitcoin has been outpacing Wall Street recently. Why? Because as this latest application shows, it is attracting an increase in exposure and interest from institutional investors – which typically include pension funds, hedge funds and sovereign wealth funds, among others.
“During the so-called ‘crypto winter’, two of the world's largest financial institutions, Fidelity and Blackrock, with a combined $14 trillion in assets under management—have been moving into the world of Bitcoin and the wider crypto ecosystem.”
Many major legacy financial institutions are now offering crypto-related services to potentially benefit their clients.
Of course, individual investors should conduct their own research and analysis and make investment decisions based on their own financial goals, risk tolerance, and investment strategy, but “I would suggest that by following institutional investors, the big money, this can be helpful and potentially very rewarding,” says the deVere CEO.
“Institutional investors often have access to extensive research, analysis, and market insights that individual investors may not have. By following their investments, individual investors can gain valuable information and insights into market trends, potential opportunities, and risk assessment.
“Institutional investors, due to their significant financial resources, can have a substantial impact on the market. Their buying or selling activity can drive stock prices or influence market sentiment. By following their moves, individual investors can potentially identify patterns or trends that may be indicative of future market movements.
“In addition, following institutional investors could reduce the risk of acting solely on your own biases.”
He concludes: “There’s a growing sense of optimism in Bitcoin - the price has jumped more than 12% since the beginning of June. This is down to increasing interest in crypto of institutional investors.
“You would do well to watch with interest where the big money of these institutions goes.”
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