In an interview with CNBC, Currie said that Bitcoin’s remarkable run has attracted greater institutional interest, but noted that smart money investors still make up a tiny fraction of the overall market. They need to come in droves for Bitcoin to become a stable asset and avoid a flash crash like the one we saw earlier this week, he said.
“I think the market is getting more mature,” Currie said of Bitcoin, adding that “volatility and the risks associated with it” are common for emerging assets.
“The key to creating some stability in the market is that institutional investor participation is increasing and they are currently small […] About 1% of that is institutional money. “
Some of Wall Street’s biggest names have thrown their weight behind Bitcoin over the past year. Legendary investors Paul Tudor Jones and Stanley Druckermiller have already invested in the digital asset, and companies like MassMutual and Ruffer Investment Company have taken significant positions in BTC.
Last month, Anthony Scaramucci’s hedge fund, SkyBridge Capital, filed an application with the Securities and Exchange Commission to set up a new bitcoin fund.
That’s on top of the tens of billions that MicroStrategy, Grayscale, PayPal, and Square have invested together.
Goldman Sachs has even changed its attitude towards Bitcoin and cryptocurrencies more generally. The company has not only increased its human resources to experts in digital currencies, but has also issued guidelines for the peaceful coexistence of Bitcoin and gold as macro-hedging.
Coinbase, one of the world’s largest crypto exchanges, has reportedly also won Goldman for its upcoming IPO.
After more than a decade of extreme price volatility, Bitcoin (BTC) is finally beginning to mature as an asset class, according to Jeffrey R. Currie, Global Head of Commodities Research at Goldman Sachs.