The Bitcoin Frontier A bitcoin super cycle powered by nation states with Daniel Batten
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Dec 23, 2024 In this conversation, Daniel Batten, an expert on Bitcoin megatrends, discusses the converging forces transforming the Bitcoin landscape. He highlights that sovereign wealth and pension funds are stepping into the Bitcoin arena, hinting at future market stability. Batten reveals how miners have shifted to becoming net buyers, suggesting a new phase in mining dynamics. The potential impact of Bitcoin ETFs is examined as a pivotal development in traditional finance, while questions arise about breaking the cycle of diminishing returns and the accelerating adoption of Bitcoin.
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Institutional Adoption of Bitcoin
- Sovereign wealth funds and pension funds may eclipse corporate treasuries in Bitcoin adoption.
- Their decision-making process is simpler, and they control trillions of dollars.
Pension and Sovereign Fund Strategies
- Two US pension funds allocated to Bitcoin via ETFs, while a UK fund used a multi-signature corporate strategy.
- Ironically, Norway's sovereign fund accidentally gained Bitcoin exposure through MicroStrategy and Marathon shares.
Bitcoin's Risk-Adjusted Returns
- Bitcoin's historical risk-adjusted returns outperform other asset classes.
- Pension funds view Bitcoin's volatility as less risky given their long-term investment horizon.