Why people are hype when they hear the words "institutional investment"?

[Obito]

If I may add, not just they have the huge money, but somewhat majority of this institutions is already established in the field of financials, stocks, gold, oil and other assets. So them dabbing in crypto is seen as sort of bringing confidence in Bitcoin itself.

Another one that I like to add is that they have friends in those industries that have companies too meaning that these institutional investors can influence their network to buy chip in and invest in the market too.

[RealMalatesta]

Do they bring the progress of adoption in the crypto space? or they are just like the whales who buy cheap and sell high for a profit?

All the elements which are participating in crypto space must be contributing for the progress of adoption in one or another way. You sound like whales are negative parts of bitcoin ecosystem but in my opinion whales are integral part and they are contributing even they buy low and sell high for their own benefits.

I think adoption would result in regular use, but if they'll buy for investment purposes only, that's not "adoption".

You cannot expect that each and everyone in this crypto space should adopt bitcoin and not make use of bitcoin in their own beneficial way. But, like this world needs all types of people and service providers (from taxi drivers to software engineers), bitcoin ecosystem also must need all types people to sustain.

In short, fist people start using bitcoin and then may adopt it. So, let them take time before adopting bitcoins and here we must note that at least they started using bitcoins, that itself very good progress for bitcoin community.

[hugeblack]

Institutional investment is not random, but rather with tight plans from banks, individuals and entities. Therefore, joining the project means that this project is credible, and therefore they can pressure governments to change or amend laws.

Unfortunately, when these investors join, the market is inactive and has negative news, and therefore when the news starts to appear, they have bought for a long time.

[magneto]

Because they seem to think that the success of bitcoin is purely reliant on institutional adoption.

This is not true at all. I would actually argue the exact opposite - institutional investment may be good at driving up bitcoin price due to the sheer size of their purse, but will never replace grassroots adoption when it comes to actually furthering the cause of bitcoin.

Mainstream adoption won't come as a result of JPMorgan or Goldman deciding to offer wealth management services that pertain to bitcoin. Rather, it will only come as a result of actual people using the network, and using BTC as a store of value.

[Fundamentals Of]

That's still adoption but in a different sense. That's adoption of Bitcoin as a rising asset or as a new store of value but that's not adoption of Bitcoin as a currency. That's just reinforcing the use of Bitcoin as a speculative asset. They may simply buy and sell Bitcoin just like what the others are doing. But it doesn't help in the adoption of Bitcoin as a medium of exchange.

The words "institutional investment" is specifically exciting because it means a huge amount of money is coming into the market. That could mean an increase in demand and therefore price. But personally, I always take this with reservation because this investment could simply exit just as easily as it entered. And it could equally cause a price fall just as it caused a price rise when it entered. But it all depends on the institution though, or its commitment to Bitcoin, or lack thereof.

[pooya87]

In my opinion the "institutional investors" thing is actually a very negative news in bitcoin world. Take the "Fidelity" example posted above, do we really want some big corporation owning a lot of bitcoin then selling IOUs to individuals while they remain in full control of those coins? This is not what bitcoin was created for!

But unfortunately people only focus on the "buy $X million" part and get hyped up because that translates into price going up, without thinking about what this really means.

[Aliceooo78]

"Thanks to Tesla founder Musk for his divine assistance, allowing Bitcoin to finally stand at the $50,000 mark during the Spring Festival." A Bitcoin investor left a message in WeChat Moments with emotion.

This situation has become a common phenomenon, and there have been many cases in which institutional investment has been used to achieve low buys and highs.

Because many investment institutions realize that more and more industries are planning to accept Bitcoin as a new payment method, which will further increase the demand for Bitcoin. In addition, as global central banks continue to increase monetary easing and countries continue to increase the scale of fiscal stimulus plans, more and more investment institutions use Bitcoin as a new tool to fight inflation.

"Nowadays, it has become extremely simple for institutions to speculate on Bitcoin to make profits-as long as large institutions enter the market, many institutions will collectively push up the price of bitcoin." A Wall Street hedge fund manager involved in bitcoin investment told reporters.

The biggest capital drivers of Bitcoin's surge are mainly Wall Street hedge funds and family offices. Their investment logic is that the supply of Bitcoin is limited (the supply is halved every four years)

Therefore, we have a clear understanding that following the whales (institutions, families) is only temporary, with only one purpose, to obtain the desired profit. My opinion is to hold it for a long time. Don't follow blindly. It is likely to be a bottomless pit.

[Wexnident]

Because institutional investors are people who would actually bring big news to the crypto space. They're pretty similar to any other whale imo, but it does bring that huge advertisement effect since they are a big company that has its name well known to a lot of people, compared to a single-person whale. Though I do think that companies actually trying to hodl crypto is bad news since they're financial capability is a lot higher than some other whales. If they were to disseminate it as a currency then it could help a lot in trying to spread the coin to a lot more entities, but if not, then it's just a negative imo.

[Lucius]

The biggest capital drivers of Bitcoin's surge are mainly Wall Street hedge funds and family offices. Their investment logic is that the supply of Bitcoin is limited (the supply is halved every four years)

True, the biggest money is there - but also the biggest risk for Bitcoin. Unless someone thinks the WS will embrace BTC as something worth more than just a means of making a profit.

Max supply is still 21 million, unless some nonsense happens and someone manages to change it in the future - and halving only reduces the miners' reward every 4 years by 50% which will eventually result in 99% of all mined BTC around 2030. In addition, we are approaching a circulation supply of 19 million, which may seem like a lot - but another 2 million is also a significant amount of BTC, especially in terms of their value, which is likely to increase constantly.

I want to say that people understand that only big players will be able to buy larger quantities of BTC in the future, and that they will need a lot of small investors to buy only 1 BTC.