Introduction

Listen to this youtube
here where James Lavish shares his views on the shifting landscape of institutional adoption of Bitcoin.

My Takeaways

He echoes why I am bullish long term on Bitcoin.

1. Bitcoin Market cap is only 2 Trillion, in a total investible market cap of 900 Trillion.  This is roughly 0.2% allocation to Bitcoin on average, which is super tiny.  Gold is 18 Trillion.
2. The Bitcoin journey is still in very early stages, where Institutions haven't really figured out yet what is Bitcoin, why they need Bitcoin and it is only very recently that we see Blackrock and Fidelity issuing guidance to their institutiional advisors and high net worth clients on how to think about the Bitcoin allocation in institutional portfolios.
3. The potential is enermous.  If that allocation rises from 0.2% to 1%, that's a 5X that will propel Bitcoin from $100k to $500k.  It won't be overnight, it might take a few years but it will get there ... a 5X.
4. And if the allocation reaches 2%, tha'ts a 10X that will propel the price from $100k to $1 million.  Again, it will take a long time because we are talking about global allocations.
5. And all this is without Trump's Bitcoin Strategic Reserve.  If this goes through, then, it will probably just accelerate the adoption of the 1% or 2% allocation to Bitcoin.
6. Note Fidelity is more ambitious with Bitcoin, recommending 10% that will make this a 50X - Bitcoin will then go to $5 million!
7. In a traditional 60/40 equity/bond portfolio, institutions are only starting to understand the impact to Sharpe Ratio, if one add 1%, 5%, 10% of Bitcoin into that portfolio.  The amazing thing is the Sharpe Ratio shoots up.   The long term expected returns rises and the impact of volatility is not increased that much ... 
8. This will spur institutions to rethink ... maybe they need to reallocate 1%, 5%, 10% of their bonds into Bitcoin.
9. People are going to look at Bitcoin and say ... this is going to grow as an Asset Class ... and I need to allocate some into Bitcoin now, because if the 0.2% becomes 1%, that's 5X, etc. as mentioned before.
10. The previous administration .. Choke 2.0 ... all that is gone with Trump administration coming in.   Lavish doesn't want to put a price prediction on this.  Apparently, the Trump administration is talking about the regulations required every day.  It requires more than the Executive Order, it might take a while, but every day that they are working on it increases the probabilities.
11. The ETF is huge ... it was such a blowout ETF launch ... it record set ... nothing comes close.  Why is that?  Institutional hedge funds, small family offices, endowments, etc. that couldn't buy Bitcoin directly before but now with the ETFs that removed a lot of hurdles.  All these hurdles were completely solved with the creation of Bitcoin ETF.
12. The Options on them.  Allow institutions to use the Options to manage the risks around their holdings.
13. The GAAP accounting ... in late 2022, they changed the rules to discourage Bitcoin ownership (if it went up, it is held at cost, if it goes down, you have to impair its value, if it recovers, you can't bring it up, etc.).  In Dec 2024, all these rules have changed.  This makes it ready for mainstream adoption.  
14. There is obviously a lot of institutional understanding and acceptance to overcome, but once the understanding is there, it cannot be undone.  The institutional adoption looks unstoppable.
15. It allows even banks to work around it to promote it to their customers.
16. Bitcoin reserves ... if you are an intelligent sovereign, you are going to do things in the background.  However, regulations can't be discreet and basically allows everyone to front run them.  The prospects becomes more plausible with each passing day.
17. We have not yet talked about sovereign nations FOMO-ing into Bitcoin, or Game Theory, or front-running the US.  Countries like Malaysia is so far behind than our neighbours.
18. We haven't even talked about so many other long term bullish case for Bitcoin longer term.  

Summary and Conclusion

If Bitcoin price falls, this is a long term GIFT to accumulate more on the cheap.

If you haven't owned Bitcoin yet and if Bitcoin price does not fall, consider to DCA (Dollar Cost Average) to slowly build a larger and larger position because this is a once in a human history event and opportunity where if you miss it, your children and grandchildren will ask you why you completely missed this.

Don't miss this opportunity ... at least, stack it with DCA whilst you still can.

$100,000 is cheap if you know, 4, 8 years downstream, the price is $1,000,000.  When it is $1 million whether you entered at $90k, $100k or $110k makes no difference ... what makes the difference is you own something, either 0.1BTC, 1BTC or whatever you can to accumulate.

Disclaimer:  As usual, you are fully responsible for your own investment and trading decisions.  This is NOT a financial advice, I am just a random guy on the Internet.