Bitcoin FOMO Is Gone, Portfolio Managers Are Taking BTC Seriously – 3iQ CEO

As the hype around bitcoin (BTC) fades, institutional investors and portfolio managers are beginning to look at the leading cryptocurrency as a “serious place” to invest, said Fred, CEO of Canada’s first bitcoin fund issuer 3iQ. Pie claims.

In an interview with Cointelegraph during Bitcoin 2023, Pye talked about Canada’s advanced regulation for crypto trading, and how it is attracting investors to the digital asset market.

According to Pye, fund managers and institutional investors running diversified portfolio assets are looking for alternative investment strategies amid a global inflationary environment and macroeconomic challenges.

“The FOMO in bitcoin is gone. It’s all shifted to AI (artificial intelligence). So now institutions and proper portfolio managers, people who are responsible for running diversified portfolios, are now starting to see bitcoin as a serious site.”

It’s not just about maximizing profits, says Pye. For institutional investors, crypto use cases will be a growing trend over the next few years. “The theme going forward for 2024 is definitely use cases. So, we have this beautiful technology, now let’s put that beautiful technology to work,” he added.

Regulatory challenges to institutional adoption have been there for some time, but given the US Securities and Exchange Commission’s reservations towards the cryptocurrency space, Canada has notably taken the lead in launching crypto ETFs in North America.

Related: Crypto Adoption Is Booming, But Not in the US or Europe – Bitcoin Builders 2023

ETF refers to exchange-traded fund which is a portfolio of assets whose shares are traded on the stock market. They combine the features and potential benefits of mutual funds, stocks and bonds.

Canadian regulators have approved several crypto ETFs over the years, including 3iQ, a bitcoin and ether (ETH) product from Objective Investing and Developed Fund Group, which attracted millions of dollars for their crypto products.

About running regulated digital assets ETFs in Canada, Pai said, “They’ve never been mispriced.” , and it works. (…) We can trace where bitcoin comes from, so we’re only buying clean bitcoin. And I think these are all features that people are concerned about.”

Canada’s latest initiative for digital assets hinges on a public consultation about a central bank digital currency (CBDC), with local monetary authorities asking what the country’s citizens want to be included in a potential digital Canadian dollar. The results of the Canadian consultation are expected to be published later this year.

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