In recent months, Bitcoin has benefited tremendously from institutional capital. Bitcoin was hit en masse by one major group after another. It appears that Ethereum is the next coin that major investors are looking at. So says the well-known macro investor, Dan Tapiero.
Tapiero says the amount of stimulus that was injected into the money supply this year has changed the financial environment in an episode of The Breakdown with Nathaniel Whittemore.
‘I believe that investors really ought to think about a different way. I think the system continues to evolve, but now almost everything you used to think of has changed. The bottom line is that you’re looking at over $30 trillion worth of investment that has been put into the global economy if you sum up all of the fiscal and monetary stimulus and try to put a value on it this year. That’s one and a half times the size of the world being pumped into the U.S. economy, so I don’t think we even know what the effect is.’
Ethereum is getting more coverage
Tapiero says that he believes Ethereum is likely to get more attention from institutional investors as the economic environment continues to change.
‘It is likely that some of these organizations will start looking at Ethereum, and they have not yet confirmed anything about it. I don’t want to say that’s a guess, but if you asked me, “What might be surprising if people don’t think about it?” ‘That would be astounding.’
Ethereum surpasses Bitcoin
DTAP Capital’s founder states that the proposal of Northern Trust to hold crypto assets could be a major indication that Ethereum is beginning to be looked at by institutional investors.
‘The fact that a rather robust, very conventional custodian of the Northern Trust has come out and confirmed they are going to keep cryptocurrency. Now they have $13 trillion in custody assets and $1.3 trillion in managed assets, and what will happen? But they keep Bitcoin and Ethereum, so I think when we start to see it, under Ethereum, you might see real help, and again, this year, Ethereum has outperformed Bitcoin and there’s a lot of rocket fuel.
The Ethereum price represented in sats can be seen below (unit of measure bitcoin). Since the start of this year, Ethereum has risen 25 percent faster than Bitcoin.
‘Ethereum isn’t gold in digital form. It’s an entirely different matter… If Bitcoin and Ethereum are going to be owned by the Northern Trust, that means they have clients who want to buy them.’