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the orange bitcoin allocation torch

Bitcoin Allocation Stone Rolling Downhill - Part 2

By davidgyoung | Alternative Investing | 16 May 2024


The purpose of this post is to follow up on a prior post about Bitcoin allocation gaining momentum.

First, a couple of recent posts from this platform:

Bitcoin Allocation Gaining Momentum - Part 1

BOJ Ends YCC After 20+ Years Supporting UST and Nobody Cares?

When is Checkmate for Bitcoin?

Bitcoin Loyalty Rewards

Over the last couple of weeks the markets received some news on movements with regards to institutions making allocations to Bitcoin (earn Bitcoin here).  As a reminder (from Part 1), it is this deliberate and regulated decision to making a likely strategic and long term allocation to Bitcoin which is the main point here.  Such an allocation can put a constant bid under the exchange rate of BTC (along with other factors and similar to the effect 401Ks had on the Dow, S&P, and Nasdaq over an extended time frame). 

Metaplanet - Metaplanet is a publicly listed firm in Japan that provides investment and consulting services.  This firm added Bitcoin as a strategic reserve treasury asset.  Is this "the MSTR of Japan"?  We won't speculate nor do we care.  We do know the yen is in free-fall and the BOJ has little power to stem the tide and may even need to dump UST to try and support the yen.  Translation: this isn't the only firm concerned with protecting itself in Japan. 

Wisconsin - here is a snippet from a CIO publication discussing how the State of Wisconsin Investment Board has started to allocate towards Bitcoin:

wisconsin pension bitcoin

This news is huge . . . . . . dare we say.  Pensions are the kings of allocation so to speak.  Like aircraft carriers, they set sail along a route and it isn't easy to move them on a dime.  First of all, this is a GOVERNMENT pension making this move, not an old firm like IBM or General Electric. 

Additionally - let's just say the pensions aren't going to come out and scream from the rooftops to the public alerting the world as to how underfunded they are.  UST.  Inflation.  Equities at all time highs already.  Our view is that pensions in general are in horrific shape when one projects out particularly when you account for cost of living and purchasing power.  Knee deep in Treasuries and equities with the money printers and inflation set to go into overdrive, just how will these pensions provide payouts that give anyone a shot in hell with maintaining purchasing power? 

Pensions need Bitcoin

Hedge Funds - a couple hedge funds dove in headfirst upon ETF approval, one even gobbled up $2B worth of the ETFs. 

hedge funds bitcoin

Hedge funds will come and go, and we suspect many will be in and out of Bitcoin frequently.  They were already active in Bitcoin.  What jumps out at us here is the big names that appear at the first quarterly reporting stop after ETF approval.  The hedgies are here and will be a bigger and bigger presence moving forward.  More liquidity and eyes on BTC - both good things.  

Do you see this trend gaining momentum or stalling out?  Your call. 

 

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davidgyoung
davidgyoung Verified Member

BTC since 2013. Investor. Entrepreneur. Always looking to learn and develop.


Alternative Investing
Alternative Investing

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