Tether CEO Foresees Pension Funds and Corporations Embracing Bitcoin
Tether CEO Paolo Ardoino predicted growing integration between Bitcoin and mainstream finance on Tuesday.
Additionally, Ardoino cited rising interest from hedge funds, pension funds, and corporations in adding the cryptocurrency to their portfolios and balance sheets.
Speaking during a Bitfinex livestream event, Ardoino said he expects fund managers will look to allocate up to 5% of holdings into Bitcoin after the watershed approval of spot BTC exchange-traded funds (ETFs) last month.
Key Comments:
- Fund managers are eyeing BTC allocations up to 5%.
- Corporations are also adding BTC to their balance sheets.
- Points to political risks driving demand for “digital gold.”.
- Recent ETF approvals brought more legitimacy.
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Tether CEO predicts more companies will hold Bitcoin
Ardoino added that more companies will likely join the likes of Tesla and MicroStrategy in holding small amounts of Bitcoin to hedge risks like political instability.
“Now every company can start adding just a little bit of bitcoin to their balance sheet and I think that will grow over time,” Ardoino said.
His predictions come on the heels of several spot bitcoin funds securing SEC greenlighting in January, catalyzing inflows now totaling $42 billion. Furthermore, the improved access has powered Bitcoin’s price back above $57,000.
The sanctioning of Bitcoin ETFs and their warmer embrace by corporations follows years of naysaying by financial regulators, Ardoino remarked.
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While U.S. legislators work on crypto regulation bills, SEC Chair Gary Gensler distinguishes Bitcoin as a commodity, unlike other cryptocurrencies he deems unregistered securities.
Bitcoin has been on a bullish spree ahead of the much-awaited Bitcoin halving. Additionally, according to the latest data, BTC is up by 35% in the last 30 days and 10% in the last seven days.
