Expert says May Halving is not attracting institutional investors to Bitcoin.
Jason Choi recently interviewed former Goldman Sachs partner and Spartan Capital CIO Kevin Koh in his Blockcrunch podcast. During the interview, Koh talked about the potential for more institutional investors to enter the cryptocurrency ecosystem in 2020, especially considering the next bitcoin reduction by half.
Many in the community believe that the next reward reduction by mined lead block institutions to invest in cryptocurrencies However, Koh said that if the cryptocurrency community cannot even agree if the appreciation of the halving already has a price or not, it is very unlikely that large institutional investors have an opinion about it and decide to enter this market.
“This does not mean that I do not find a strange CIO that looks closely at the asset class, that has a solid vision and wants to start an exposure, but I would say that for the average institutional investor, it is probably not what motivates the decision to invest in cryptocurrencies, "he declared.
He also talked about how there are several different types of institutions, which generally have solid governance processes that require board approvals before making investments in new classes of high-risk assets.
"They need to do extensive due diligence before they can make these investments," he said.
In addition, Koh said that these governance processes are likely to be the main drivers of a possible investment in Bitcoin, not half. He also highlighted a recent Bitwise survey of 415 consultants in the United States who collectively managed more than $ 24 billion in assets. According to the survey, only 6% of consultants invest client funds in Bitcoin and other cryptocurrencies.
"The other 94% still plan to avoid investing in cryptocurrencies in 2020, and approximately 55% of them will definitely not invest in cryptocurrencies this year."
In terms of investment strategy, Koh stated that they generally invest through an established fund with which they already have a relationship.
"As the asset class is relatively new, many of the funds in the ecosystem do not have an extensive history spanning several years," he said. "Then, there is more diligence you can do."
