Fireblocks CEO says retail, not institutions, will drive Bitcoin price surge.
Michael Shaulov, CEO and co-founder of institutional custody platform Fireblocks, believes that while a BlackRock spot Bitcoin (BTC) exchange-traded fund (ETF) will bring in new institutional money to Bitcoin, it will be retail investors who will ultimately drive significant price surges. BlackRock filed for a spot Bitcoin ETF on June 15, which led to other financial firms doing the same and Bitcoin’s price reaching its highest levels in a year. However, Shaulov notes that institutional involvement in crypto may not necessarily lead to a rise in prices. He explains that when institutions participate in the market quietly, they are able to do so without moving the price. Mid-2020 saw “massive inflows” of institutional money, but prices did not appreciate until retail investors became frenzied over crypto assets later in the year. Shaulov believes that retail investors are less sophisticated and move the price dramatically, leading to 50% increases. However, he notes that the “physics of Bitcoin” and its finite supply means that any mass buy-up of Bitcoin should move the needle. Shaulov founded Fireblocks in 2018 and believes that the narrative over Bitcoin is still “playing out” for these institutions. He believes that Bitcoin is the “ultimate insurance asset” and has properties for when everything gets worse. It is an asset that is disconnected from the government, can be digitally native, and can be moved easily.
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