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Fasten your seatbelts, the BIG boys and girls are coming...


After years of hype...

It finally looks like the institutions have arrived. Here's what's next.


Sure, many VCs and forward thinking hedge funds have been in the space for years...


...but this is different.


300 of the world's largest asset managers will soon have direct bitcoin access through the Blackrock/Coinbase partnership.


This list includes the biggest insurers, pension funds, and even sovereign wealth funds with $20 trillion in assets under mgmt.


We're talking about the BIG boys and girls here.


In addition, Blackrock came out yesterday and announced they will be offering bitcoin to their wider institutional client base through its asset management arm which covers another $10 trillion.


That's the cherry on top of the sundae.


Both Fidelity and Blackrock are now clearly signaling that they're serious about providing bitcoin solutions.


But why now?


What's driving institutional adoption for now is client demand:


"Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients,"


Blackrock commented in a statement about its foray into bitcoin.


Even if institutions don't realize it yet, what is actually driving and what will keep ramping up demand is a store of value problem.


Here's the problem in a nutshell:


-You can't save in cash. It doesn't matter if it's the Argentine Peso, the Turkish Lira, Euros or Dollars - they all have a built-in requirement for debasement... and debasement is ramping up.


-You can't save in bonds. Bonds are just debt denominated in currencies that get more and more debased. You'll get your principal + interest back, but what will it be worth at that point?

Real returns have been negative for years now.


-You can't save in stocks. Don't get me wrong, there's amazing companies out there. But storing your lifeblood in Apple shares is probably not the best idea. In fact, the only reason pension funds and even central banks are pouring trillions into about five companies is because they simply can't figure out what to do with their devaluing cash and bonds.


-You can't save in real estate. It's very similar to the problem with stocks. Real estate is good for housing and work. But monetizing homes doesn't make sense. Blackstone doesn't actually want to own half of Houston. It's just a way of parking cash.


-You can't save in commodities. Trading and custody is actually so cumbersome that entire futures markets with trillions of paper dollars have been built on top. This exposes commodities to the same inflation problem as cash.


Guess what's left...


 

If you enjoyed Andrew's article, you can also follow him at https://www.linkedin.com/in/andrewmarkaxelrod/ and ask for his Bitcoin Macro mailing list for more free content.


 

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