As a venture capitalist, Marco Manoppo has been quite busy lately. His recent articles about missing out on huge returns from virtuals (a topic he explored in depth last week) have gone viral. Now, he’s back with another thought-provoking piece about the potential impact of passive investment funds on Bitcoin buying conditions.
Manoppo begins by explaining that as Bitcoin gradually moves towards traditional finance, particularly after MicroStrategy (stock code: MSTR) was officially added to the Nasdaq 100 Index, passive investment funds could play a significant role in driving up its price. He points out that even though there have been some recent pullbacks in the cryptocurrency market and it’s currently experiencing a period of price discovery, his overall bullishness on Bitcoin is stronger than ever before.
The veteran investor believes that the growth of passive funds is one of the main reasons for his renewed optimism. He explains that passive funds, such as index funds and ETFs, have become increasingly popular due to their lower costs and wider distribution. Manoppo predicts that as more institutional investors begin to recognize the potential benefits of including Bitcoin in their portfolios, demand for these products will skyrocket.
MicroStrategy’s (MSTR) inclusion in major indexes could be a game-changer for Bitcoin’s price, according to Manoppo. He argues that since passive funds like QQQ (an ETF issued by Invesco that tracks the Nasdaq 100 Index) will be forced to buy MSTR due to its inclusion in the index, they will indirectly be buying more Bitcoin.
This could create a virtuous cycle where increased demand drives up the price of Bitcoin, further enticing more institutional investors to join the party. However, Manoppo acknowledges that there are some challenges ahead, particularly regarding accounting standards and regulatory uncertainty. Nevertheless, he remains confident that the trend towards greater integration of Bitcoin into mainstream finance is unstoppable.
In conclusion, Manoppo’s analysis suggests that while there may be some short-term volatility in the cryptocurrency market, the long-term prospects for Bitcoin look brighter than ever before. As more institutional investors begin to embrace digital assets, demand for products like ETFs and other hybrid investment vehicles is likely to surge, driving up prices even further.
Reported by m.theblockbeats.info
