Derisking Bitcoin
As Bitcoin approaches $100K, we’re witnessing a shift that’s redefining traditional finance.
As Bitcoin approaches $100K, we’re witnessing a shift that’s redefining traditional finance. Bitcoin is unique in that the higher its price climbs, the less risky it appears to institutions. Every milestone brings enhanced infrastructure, regulatory support, and mainstream acceptance. In other words, rising prices are de-risking Bitcoin for the world’s largest capital allocators.
This time, institutional capital is driving the momentum. While retail is just now waking up, institutional players are already staking their claim. MicroStrategy (MSTR), under Michael Saylor’s leadership, has transformed itself into a Bitcoin treasury management company, outperforming every major stock, including Nvidia, by focusing solely on Bitcoin.
Saylor’s success, however, came because he had the freedom to act unilaterally. For most companies, board members, committees, and risk-averse CFOs faced an entirely different landscape. Walking into a boardroom to pitch Bitcoin just a few years ago was a reputational risk too heavy to bear. The risk/reward calculus simply wasn’t there; for some, even raising Bitcoin would’ve been career suicide. But now? With trailblazers like MicroStrategy and BlackRock demonstrating success, other boardrooms may be rethinking their agendas.
The results are clear: BlackRock’s iShares Bitcoin Trust has accumulated $40 billion in AUM, surpassing the 20-year-old gold ETF in just 10 months. Bitcoin’s market cap is approaching $2 trillion, yet in the grand scheme, it’s still a “baby” on the financial stage, with a total addressable market in the hundreds of trillions.
The career risk of ignoring Bitcoin grows with each passing day. As a fiduciary, failing to include Bitcoin in your portfolio could lead to some uncomfortable questions:
"Why didn’t we invest in Bitcoin?"
Ignoring Bitcoin is becoming harder to justify.
