According to Cointelegraph, Michael Shaulov, CEO and co-founder of institutional custody platform Fireblocks, said that spot Bitcoin ETFs will deliver new institutional funds to Bitcoin, and it will be retail investors who ultimately drive the sharp rise in Bitcoin prices. When institutions participate in the market in a quiet manner, they are almost able to do so without affecting prices, and mid-2020 was another period of significant inflows of institutional money. But prices didn’t really rise until later this year when retail investors went crazy for crypto assets.
Shaulov explained, “Despite the massive inflows, these institutions are sophisticated enough to buy BTC slowly and use algorithms that don’t drive the market up. 50% of the growth came from retail investors because their participation is less sophisticated and the prices fluctuate wildly. It will certainly be easier for some institutions that are not currently participating in the market to add Bitcoin to their allocation.”
Additionally, Shaulov said that he personally believes Bitcoin is the “ultimate insurance asset.”