- BitGo Chief underscored renewed institutional interest in BTC.
- Based on this and the halving event, BitGo CEO expects $80K by May.
A renewed institutional interest in Bitcoin [BTC] could drive more upside. According to BitGo Chief Mike Belshe, this interest is peaking and could offer another boost to the leading crypto asset.
In a recent interview with Bloomberg TV, the BitGo chief scolded weak hands who panicked during the recent retracement, saying,
“We’re at a very, very good time. There’s a saying if you’re not ready for my 20% drop, you’re certainly not ready for my 600% increases.”
Belshe believes a significant upside could be in play as various categories of institutions embark on capital allocation for Bitcoin.
“We’ve seen smaller hedge funds come in; larger hedge funds will come in. Pension funds are coming, and endowments are already here.”
Institutional demand for BTC ETF to surge towards summer?
Other institutions have been slow to jump on BTC ETFs. Most of the slow uptake has been attributed to due diligence and subsequent lengthy consultations with investment committees for approval.
In early February, Bloomberg reported that major firms like LPL Financial Holdings opted for three months to conduct due diligence on the new BTC ETFs.
Rob Pettman, vice president of wealth management solutions for LPL, underscored the need for due diligence, stating;
“We just want to see how they work in the markets.”
The report acknowledged risk, asserting that over 250 ETFs, some including crypto products, closed down in 2023.
Beshle also cited the lengthy process of going through investment committees before a firm is approved to tap into BTC ETFs.
Most importantly, the BitGo Chief noted that most firms will complete these processes by summer.
“So now that we have an ETF available, it takes a little bit to go through investment committees. But I think we’re starting to see that runup happen now all through the summer. If it rhymes, you should see $80K by May.”
If true, a new round of institutional demand for BTC ETFs could drive more inflows into the crypto markets, sustaining the bull cycle even longer.
