Philippe Laffont, the billionaire founder of Coatue Management, has stunned traditional finance circles by declaring his support for Bitcoin. Anthony Scaramucci, founder of SkyBridge Capital, reacted on social media by praising Laffont’s move as a sign of growing institutional validation for the cryptocurrency.
Laffont previously spent his career being hesitant about Bitcoin. The veteran has been staying out of the asset based on fears of highly volatile fluctuations. Nonetheless, speaking at the Coinbase State of Crypto Summit in New York City, he made a significant shift in attitude due to the stabilization of the asset.
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Things have since changed, as he now believes that Bitcoin has matured to a level where it may be decently included in standard investment portfolios. Laffont, in particular, cited the potential of Bitcoin as an anti-inflationary hedge, a feeling shared by most major asset managers.
Commenting on it, Laffont recommended an investment of between three and four percent of cryptocurrency of the investment portfolio in Bitcoin. This, he said, gives exposure without causing immense investor apprehension. He also regrets the fact that he should have invested earlier on, realizing that he has missed the chance.
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Laffont categorized his clients into three groups based on their views on cryptocurrency. Some trust his judgment entirely, some question his prior reluctance toward Bitcoin, and others remain deeply skeptical. According to him, the last group is shrinking as sentiment shifts in favour of crypto assets.
Anthony Scaramucci, a longtime Bitcoin advocate, backed Laffont’s follies by forecasting greater gains ahead of the digital currency. He recently said that Bitcoin has the potential to rally up to 500,000, and he said this is a result of all the increased government spending.
Laffont’s approval is a major reversal of language among one of the most powerful tech investors. His action can act as a catalyst for other hedge fund heads who have not yet warmed up to Bitcoin’s involvement in the financial sector worldwide.
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