Why High Net Worth Investors Are Big on Bitcoin Right Now

As bitcoin (BTC) hovers around the $90,000-$95,000 region, down more than 10% from its all-time high just under four weeks ago, a gap is growing between -trading – whose technical analysis tools show that the main digital currency could be. due for another drop—and long-term investors who believe the bull run is nowhere near over.

That's according to David Siemer, CEO of Wave Digital Assets, a company that provides asset management services to funds and high net worth individuals in the crypto space. The company counts Charles Hoskinson, the CEO of the company behind Cardano, as one of its clients.

“In 14 years of owning bitcoin, I've never seen a dichotomy like this,” Siemer told CoinDesk in an interview. “The traders are all anxious and nervous and hedged, completely neutral or worse. And all the long-term people are very supportive. “

“There's a good chance we'll go to $200,000 (per bitcoin) this year,” Siemer said. “Do I think we'll see $1 million dollars per coin in my lifetime? Yes. Not long, you know, not next year. … The intelligent, more connected people I know are also very positive. There's more going on in the next six months than most people realize.”

Topping the list of developments for the coming year are several jurisdictions – including the US, Russia, Singapore, the United Arab Emirates, South Korea, Japan, the Philippines and some European countries – looking to take big steps in favor of crypto. , according to Siemer. (Wave runs crypto education programs for various branches of the US government, such as the Internal Revenue Service or the US Marshals Service, as well as other agencies around the world; of course, practices are government is the company's fastest growing business.)

These measures, in whatever form they take, are likely to have a positive impact on some of the private sectors in these countries, Siemer said. “(Japan or Singapore), these are societies where there is trust and confidence in their governments. If their government says it's okay, it's okay. It's different from the US where we think our boys are idiots. “

What motivates such a sudden interest in the crypto industry? The tremendous success of US spot bitcoin exchange-traded funds (ETFs), for one, is forcing financial institutions around the world to think about ways to compete. That means spinning off exotic new products, such as multi-indicator yield funds, to make up for the liquidity siphoned off by BlackRock's IBIT.

“The ETFs launched in America and completely destroyed the Bitcoin ETPs around the world,” said Siemer. “They had all these terrible products, costing 1.5%. All these boys were crushed. ” Regulators, for their part, tend to be supportive, Siemer said. For example, the European Union could produce a friendlier version of the Regulation of Markets in Crypto Resources (MiCA).

The chance of seeing new strategic bitcoin reserves is also high, said Siemer. “Even if the US doesn't make a reservation, at least several other countries probably will,” he said. Not that he is ignorant of the prospects of US Wave, he said, he is currently in discussions with seven different states that are considering creating a reserve, Texas, Ohio and including Wyoming.

What about the federal government? Siemer put the numbers at slightly better than 50-50, partly due to the nearly $19 billion worth of bitcoin he already owns.

“That's a great start to a bitcoin reserve,” Siemer said. “All they want to do is sell it. It's a lot more palatable to the tax base than buying, you know, $10 billion worth of bitcoin.”