Bitwise CIO "Bitcoin enters IPO stage…1% allocation is a thing of the past"

Uk Jin

Summary

"Bitcoin"'s institutional investor allocation could expand from 1% to 5%.
"Bitcoin" has secured liquidity and stability due to market entry by exchange-traded funds (ETF) and various institutions.
"Bitcoin" still has significant upside potential even during short-term corrections, and a 5% allocation is becoming the new standard.

A claim has emerged that Bitcoin (BTC)'s significance as an investment asset is strengthening.

According to The Block on the 5th (Korean time), Matt Hogan, Bitwise Chief Investment Officer (CIO), wrote in a letter to investors the previous day that "Bitcoin has reached the 'IPO (initial public offering) moment'" and that "institutional investors' Bitcoin allocation will expand from the existing 1% level to 5%."

He said, "Bitcoin is at a stage where early investors are realizing profits, like in the early listings of Facebook and Google," adding, "This is not a bearish signal but a sign that the asset has entered a maturation phase." He went on to add, "With exchange-traded funds (ETF), treasury companies, and sovereign wealth funds entering the market, Bitcoin has secured liquidity and stability that make it resilient to large-scale sell-offs."

He also said, "Bitcoin is no longer an asset expected to rise 100x, but it still has significant upside as it heads toward gold's $2.5 trillion market capitalization," adding, "Short-term corrections are rather buying opportunities, and a 5% allocation — not 1% — among institutional investors is becoming the new standard."

BTC