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Hedge fund manager Brian Kelly says the surging number of institutional investors owning bitcoin is down to the digital currency\u2019s core value proposition- a fixed coin supply. On the other hand, the same institutional investor interest is helping to build confidence in the top cryptocurrency while taking away some of the perceived risks.<\/strong><\/p>\n Kelly\u2019s comments follow reports that the European Central Bank (ECB) wants to issue its own digital currency. Speaking in an interview<\/a>, Kelly, who is the founder of BK Asset Management, dismisses the notion that a central bank-issued digital currency poses a threat to bitcoin.<\/p>\n Noting that China and the U.S. have similar plans, Kelly is quick to point out that none of the central bank-issued digital currencies can match bitcoin\u2019s value proposition. Kelly explains:<\/p>\n I cannot imagine the ECB issuing a digital currency that has a fixed supply. In fact, I would think it (digital Euro) will make it a lot easier for them to digitally print more money.<\/p>\n<\/blockquote>\n Furthermore, he says it is this creation of excess money by central banks that \u201ccarry risks for holders fiat currency.\u201d Creating excess money highlights why bitcoin (BTC<\/a>) is seen as \u201cdigital gold.\u201d<\/p>\n However, when asked about his bitcoin price prediction, an evasive Kelly offers an explanation of what is likely to happen first before the top crypto makes its biggest break. He says:<\/p>\n Bitcoin has been above $15,000 for more than 12 days in its entire history. I suspect that some people who bought in late 2017 and in 2018 might want get out of it. So I would not be surprised to see a pullback.<\/p>\n<\/blockquote>\n Still, the fund manager says that he will not be surprised if the value surged further in the \u201clonger term.\u201d Bitcoin, which trades above $16,150 at the time of writing, has a total market value of over $300 billion. In contrast, the total value of known gold stocks is $9 trillion, a figure that dwarfs bitcoin\u2019s total market value several times over.<\/p>\n Without being specific, Kelly says the current disparity between bitcoin and gold prices means \u201cthere is a lot scope for upside.\u201d<\/p>\n Meanwhile, backing Kelly\u2019s strong assertions that institutional investors are heavily involved in the bitcoin, is the latest weekly report<\/a> by Arcane Research. According to the report, the number of large bitcoin traders on the CME \u201chas more than doubled this year\u201d while open interest is nearing $1billion.<\/p>\n Arcane Research cites a report by the Commodity Futures Trading Commission (CFTC) showing almost 100 large traders that hold the bitcoin contracts on CME. This contrasts with the year 2019 when there were only 45 such large traders.<\/p>\n The report concludes that \u201cthis is perhaps one of the best indications of increased What are your thoughts about Kelly\u2019s bitcoin price prediction? Tell us what you think in the comments section below.<\/strong><\/em><\/p>\n The post Hedge Fund Manager Brian Kelly Says Increasing Institutional Interest in Bitcoin Down to its Fixed Supply<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nBitcoin Value Proposition<\/h2>\n
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Bitcoin vs Gold<\/h2>\n
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Large Traders Double on CME<\/h2>\n
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\ninstitutional demand for bitcoin exposure.\u201d<\/p>\n