MicroStrategy Completes $500 Million Offering, Plans More Bitcoin (BTC) Purchase
AI Trading

Ari Paul, the co-founder and chief investment officer of the cryptocurrency asset investment firm BlockTower Capital, has stated that institutional investors are increasingly buying Bitcoin (BTC) to protect their wealth.

In a new SALT Talks interview with John Darsie, Paul said institutions are taking a defensive approach when investing in the first and largest digital currency. He said their Bitcoin investment is not about getting rich, but about staying rich.

Read Also: Bitcoin: I Know As the Operator of Gemini That There Is a Huge Institutional Demand –Tyler to Peter Schiff

Ari Paul noted:

AI Trading

“We’ve been talking with a lot of billionaires in the financial world. It’s such an interesting shift in mindset. They are now thinking defensively. They are thinking enough of their billionaire buddies have 10% of their net worth in Bitcoin. If they don’t, they are thinking ‘Man, if Bitcoin does another 20X, I’m not invited to the parties anymore.

“I’m not in that rich club’, wherever they are in the hierarchy. So now they are thinking, ‘I need a passive allocation. I need 10% of my net worth in this just to keep up, just in case.’ It’s not about getting rich, it’s now about staying rich.”

Ari Paul added that the amount of data that indicate the entry of institutional investors into the Bitcoin bandwagon is overwhelming:

“We’ve seen tons of Bitcoin moving off exchange[s]. Every data point on this is massive institutional buying. You have some quantitative data. Things like inflows into Grayscale, which are inflows into the closed-end vehicle. That was I believe $3.8 billion in Q4 which was close to everything that have flown into Grayscale prior to that.”

Read Also: Mexico’s Second-Richest Man Reveals Reason for Investing $1,000,000,000 in Bitcoin (BTC)

According to Paul, the new category of investors will contribute to a long-term reduction in Bitcoin’s volatility:

“Those are very strong hand buyers. These are people who are looking to buy more on dips. These are people who are not going to sell with a change in trend. The volatility is not going away. You can’t have raging bull runs that take you 10x higher without volatility. The volatility will gradually fall as this institutionalizes [with] broader market participation.”

Follow us on Twitter, Facebook, Telegram, and Download Our Android App.

AI Trading

HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Solomon Odunayo

By Solomon Odunayo

Solomon Odunayo is an accomplished blockchain and cryptocurrency expert at Herald Sheets, known for his in-depth analysis and engaging articles that cater to both beginners and experienced readers. With a degree in Computer Science from the University of Lagos, Solomon leverages his technical background and keen understanding of the crypto space to provide readers with valuable insights and up-to-date news. His passion for innovation and commitment to staying current with industry developments make him a trusted voice in the digital currency community.