The institutions are coming!
News leaked recently that Bank of America loaded up on Microsrategy stock, undoubtedly seeking price exposure to Bitcoin. This is what happens when the powers in charge (SEC, The White House, Congress) twiddle their thumbs and waste time trying to slow down Bitcoin.
It just doesn’t work.
People just find a way, even Warren Buffett, a noted Bitcoin Hater is indirectly on board now, via his large stake in Bank of America stock.
Bitcoin is a Like Water, Just Like Bruce Lee Predicted
Try as they may, the legacy system is not going to be able to ignore an asset in high demand.
While everything is still denominated in fiat, the inevitable is happening. Institutions are loading up anything on the periphery of the Bitcoin system, just to get exposure to the ever-rising price. They know you can’t stop Bitcoin, so it is time to join in.
While they may be unable to buy and hold Bitcoin directly because of the lack of clear regulatory direction from the US government, they can (and are) buying securities that have Bitcoin on the balance sheet.
“Be like water making its way through cracks. Do not be assertive, but adjust to the object, and you shall find a way around or through it.” - Bruce Lee
Bitcoin is like water, flowing into every corner of society from the wealthiest investor in America to the poorest people in third-world countries.
Smart Investors Are Seeking (or are forced into) Bitcoin Price Exposure
High net-worth individuals like Warren Buffett have been talking junk about Bitcoin for more that a decade now. Has it worked?
Depends on how you look at it. Buffett’s net worth is higher than ever, but the money printer has been in overdrive for the last three years. And if you run the numbers, his net worth in Bitcoin terms continues to plummet. Undoubtedly though, there are smart people in every financial services company in America, many who own Bitcoin personally.
As these folks bring their expertise into the workplace, they convince large companies to at least get some Bitcoin exposure, like Bank Of America with their recent purchase of 226,000 share of Microstrategy.
Warren currently owns almost 13% of Bank of America, thus he now has price exposure to Bitcoin via Microstrategy.
The SEC Drags its Feet - Bitcoin Still Finds a Way
The SEC, under fire for allowing the entire crypto space to catch fire under its watch in 2022, still drags its feet on sensible Bitcoin investment vehicles.
Countless spot Bitcoin ETFs have been rejected, under the guise of “manipulation” being a danger to the investing public. Yet unregistered securities rekt millions last year between Do Kwon, Block Fi and FTX melting down.
Its plainly clear at this point the US government is simply trying to do the impossible - hold back the avalanche that is Bitcoin with a single snowplow.
Investors (and Bitcoin) though simply find a way. When something is in demand, there is no stopping it.
So it will be with Bitcoin. Shareholders of Microstrategygy, Tesla, and Block (Square) Inc already have price exposure to varying degrees.
Now anyone who is a Bank of America shareholder also has indirect price exposure to Bitcoin.
Welcome to the club Warren… Bitcoin Buffett is finally in the house!