Institutional Bootstrapping
Recent allocations to Bitcoin by Mass Mutual ($100 million), Tudor Investments (2%) and Michael Sayler’s Micro Strategy ($1.3 billion) have helped secure the future of their investments by giving legitimacy to the asset. By their actions they legitimise the product and hence help assure its success.
Michael Saylor, CEO of Micro Strategy has taken this process of assurance one step further by helping to develop the narrative around the asset that enables greater adoption.
In the following clip Saylor discusses how the narrative around Bitcoin is shifting from one of an “uncorrelated speculative asset” to becoming “the world’s best long term duration investment grade safe haven Treasury asset.” As he points out, the shift in narrative, which he is actively promoting, legitimises owning Bitcoin for other institutions and mainstream retail investors.
Bitcoin demonstrates the role institutional investors, hedge funds and companies can play in assuring their investments. This is no less true for products built on the new asset class design.
Those launched by trusted institutions have greater assurance because of the trusted brand backing them. Institutions that allocate to the products help secure the future of their investments by the legitimacy they confer.
In other words, institutions can play a major role in the success of the new asset products they invest in with the added advantage that investment in a product such as Bitcoin or the S&P500 can now be 100 times more profitable.
Those launched by trusted institutions have greater assurance because of the trusted brand backing them. Institutions that allocate to the products help secure the future of their investments by the legitimacy they confer.
In other words, institutions can play a major role in the success of the new asset products they invest in with the added advantage that investment in a product such as Bitcoin or the S&P500 can now be 100 times more profitable.