Bitcoin price surge will come from retail, not institutions: Fireblocks CEO
While an approved BlackRock spot Bitcoin (BTC) exchange-traded fund (ETF) will funnel new institutional money to Bitcoin, it's going to be the retail investors that ultimately drive any significant price surges, according to Michael Shaulov, the CEO and co-founder of institutional custody platform Fireblocks.
On June 15, investment colossus BlackRock filed for a spot Bitcoin ETF, leading to other financial firms filing their own, along with Bitcoin's price reaching its highest levels in a year.
However, while many are hopeful that institutional involvement in crypto will further rocket prices, Shaulov notes that may not necessarily happen.
"When institutions come in to participate in the market and they're doing it in a quiet way, they're able to do it almost without moving the price," Shaulov told Cointelegraph during the Australian Blockchain Week.
According to Shaulov, mid-2020 was another time that saw "massive inflows" of institutional money, but prices didn’t really appreciate until retail investors frenzied over crypto assets later in the year.
Instead, “50% increases [came] from retail […] because they’re participating in a way that’s less sophisticated and moves the price dramatically," he explained.
That being said, Shaulov noted that the “physics of Bitcoin” — mainly its finite supply — means that any mass buy-up of Bitcoin should end up moving the needle.
Interestingly, Shaulov — who founded Fireblocks in 2018, believes that the narrative over Bitcoin is still "playing out" for these institutions.
Shaulov said that today, there are numerous Bitcoin-based narratives still at play: Is it a hedge against inflation? Is it a public reserve currency? Is that a hedge against government financial misdealings?
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