Bitcoin has been struggling to find buyers as of late, but that may be short lived.
According to Mike Novogratz, a former Wall Street Hedge Fund Manager, he thinks that at some point just about all the big Macro Funds will have at least a 1% allocation in bitcoin.
He is actually curious why that is not happening already:
"Don’t understand why all the big macro funds out there don’t have a 1 percent position in Bitcoin. Just seems logical even if your prone to be a skeptic."
(Source:
)https://twitter.com/novogratz/status/1094222682953003008
- novogratz
He then followed that tweet up the hashtags: raydalio, goldproxy, animalspirits, and greatriskreward
What might that look like?
Bridgewater Associates is said to manage about $160 billion in assets and be one of the largest hedge funds in the world.
(That is the fund's manager Ray Dalio, pictured at the top)
If you include the Top Ten hedge funds in the world, you easily eclipse the $500 billion mark.
If 1% came from these guys, it would represent about $5 billion in buying, not earth shattering, but not too shabby either, especially when bitcoin is a $60 billion dollar market.
And that is only the Top Ten hedge funds...
If you also include some of the largest macro mutual funds, like say a Vanguard, you see funds under management in the trillions of dollars...
(Vanguard has roughly $5 trillion assets under management)
A 1% allocation from them would be $50 billion.
If you get some, or all of these to also start taking 1% positions you start seeing the potential here.
The beautiful thing about this is that bitcoin doesn't even have to catch on as a global form of payment for this to happen....
It just has to be a proxy for gold.
Many of these funds hold small allocations in gold and other precious metals as a hedge against uncertainty.
Bitcoin would be used exactly the same way.
If it were, and I think it will be, the price of bitcoin should go up significantly over the next 5 years or so as they start to take positions.
We just need more in the way of infrastructure and clarity on regulations before they start moving in.
Stay informed my friends.
Image Source:
https://www.businessinsider.com/ranked-the-10-biggest-hedge-funds-in-the-us-2018-5
