NEW Report CONFIRMS Wall Street is Going to FORCE Bitcoin to EXPLODE! | EP 1599

Nico Moran (0:02)

Bitwise just dropped their first ever institutional Bitcoin report. And there's some interesting insights. And forgive me, guys, I will read a little more than usual on it, because again, I think there's a lot of good information coming from it. The first one, actually the most bullish one out of this is that they not only told us that the institutions are believing in a super cycle and that it may have just started, but they also gave us some insights as to how the competition is unfolding on Wall Street, what the various institutions are doing, how much capital they have allocated, and what they are thinking for their long-term investment thesis. So without further ado, let me get into this, because again, I got a lot to unpack here. And again, I am going to read a little more than I know you guys like. But here you go, Bitwise dropped this yesterday. It is the first ever Bitwise Institutional quote crypto adoption report. There's a little bit of alt coins in here since I'm still early in the show, but really it's an asterisk. The main report is pretty much about Bitcoin. So let me pull over to the PDF here, and we shall chat about it. So I'm going to here, actually, let me give you the kind of the executive summary here, so you can kind of get an overview of what's going on. They interviewed 15 of some of the biggest senior allocators and endowments, foundations, pension funds, multi-family offices, sovereign wealth funds, and public companies. And they found three patterns that hold up consistently. That Bitcoin is the universal conviction asset, that the majority of institutions are only focused on Bitcoin. There is a little bit of focus on the mother of all shit, Bitcoin, Ethereum, and Solana. But really, those are kind of viewed as kind of like gambling, like gambles. They're just like a speculative bet. They're like, hey, if it works out, okay, cool. But the main conviction is in Bitcoin. So bullish take from the institutions here, that they are viewing in the quote unquote digital asset space, in the crypto space at large, it is mainly hyper focused on Bitcoin and everything else is just hot garbage. Now, of course, Ethereum, Solana, they got a place here. If you are a crypto degen, I would say, but the majority of the institutions are just hyper focused on Bitcoin. Next, institutional crypto capital is sticky. That is a very interesting take here because for, throughout the whole bear market, a lot of the contention from many Bitcoiners is that the institutions had lead his hands, you know, that they didn't huddle Bitcoin. They don't really believe in this asset class. They don't really believe in Bitcoin. They're just here for the games. Well, from the Bitwise Report, it's kind of the opposite. They are pretty strong handed holders of Bitcoin. They do view this from a long term perspective. They aren't holding Bitcoin. They are just holding Bitcoin because of the gains. They aren't getting flushed out because of the bear market. They are looking at this on a longer timeframe, which I would argue is a very bullish sentiment we're seeing. And then of course, the remaining barriers to growth are governance and reputation, not investment merit. Essentially, because there isn't, quote unquote, as much regulatory clarity as the institutions would like, it's not so much a question of whether they should invest in Bitcoin. It is more a question of how do we invest in Bitcoin? What are the vehicles for us to invest in Bitcoin? And still a slight conversation on the reputational risk of investing in Bitcoin. One of the biggest takeaways that I got from this report, so I read it this morning, one of the biggest takeaways that I got, is this idea that a lot of the institutions in Wall Street, they kind of invest with this hive mind perspective, that until many allocators, until a lot of hedge funds and people with really big names dive into Bitcoin and they basically give it a reputational pass, they're kind of sitting on the sidelines. And once you see a lot of people start to invest in Bitcoin, it starts to become this thing where it's like, okay, it's no longer if I invest, I'm going to get fired. It's more like, as we've been saying, if I don't invest, I'm going to get fired. It's once you start to see the bulk of institutions invest in Bitcoin, then it starts to become okay, and they all start going into force. So that's the executive oversight. Now, I'm going to jump down here before I get into the key 10 findings. I'm going to jump into the allocation sizes, because this is, I think, probably what we're all wondering. You know, we've been hearing it in Bitcoin forever, this idea that the institutions are coming, that one day they're going to buy our bags, and once they do, they're going to jump in, and trillions of dollars are going to find its way into Bitcoin. And if you're watching the ETF inflows, if you're watching just the headlines regarding Bitcoin adoption from Wall Street, you probably get this opinion that it's like, oh, it's okay. They're all investing in Bitcoin. It's only a matter of time until the trillions come in. Well, from this report, it's not exactly the case going on. The majority, just to summarize, the majority of allocation we've seen through all these various institutions is roughly around 1% to 2%, which is again, the BlackRock recommendation that the 60-40 portfolio doesn't work, and just a simple 1% to 2% of your capital going into Bitcoin is going to be not only the safest way to invest in Bitcoin, but it's also going to give you outside returns. That seems to be what the majority of institutions are essentially doing. Just 1% to 2%, some a little less than 1%, and some smaller, more small family offices are as high as 13%.