Danny Masters, president of CoinShares and former commodity trader at JP Morgan,
explained on CNBC that the financial landscape has changed so much that not having exposure to Bitcoin could be a riskier move for portfolio managers than investing in cryptocurrency.
During an interview with Power Lunch, the director of digital asset management mentioned that in the past investing money in Crypto Cash was considered risky for asset managers in the institutional environment. However, he said that the „perceived career risk associated with having Bitcoin in your institutional portfolio, as a portfolio manager, is rapidly migrating to a career risk of not having Bitcoin in your portfolio, and it is a truly extraordinary development.
CNBC presenter Kelly Evans summarized the comment:
„Really well explained, you won’t get fired if you have Bitcoins but you might get fired if you don’t.“
Masters believes that the perception of Bitcoin as an extremely volatile asset has decreased as „the volatility of other asset classes has proven to be much higher than people expected.
Continuing on, he pointed out that Bitcoin got rid of its negative stigma among mainstream investors and it is no longer a question of whether companies will gain exposure to digital assets, but when and how much, citing the investments of Square, MicroStrategy and PayPal.
These companies are „outperforming the market because they have made public their exposure to Bitcoin,“ and as a result:
„Sentiment is electric, no doubt about it.“
In October, Masters stated that Bitcoin was increasingly resilient and in a very strong position, while its price refused to waver despite reports of accusations against the founders of the major BitMEX derivatives exchange that would have caused a contraction in the past:
„Having witnessed Mt. Gox, the ban in China, the Bitfinex hack, the comments of Trump and many other events devastating for the market that mark the history of Bitcoin, I was struck by the lack of a negative price movement, especially in the case of BitMEX“.
The Fear & Greed Index is at 92 out of 100, indicating a sentiment of extreme greed. These levels had not been touched since June 2019, when the index reached a peak of 95.