Longtime bitcoin bull and founder of Galaxy Digital, Michael Novogratz, has recently spoken about the future of bitcoin. He went on to say that, as crypto becomes mainstream, wealthy baby boomers will become the next generation to embrace crypto:
After Morgan Stanley announced that it would offer access to bitcoin funds to its wealthy clients, Novogratz said that he believed other important banks and trading platforms would do it too. If this happens, baby boomers will become more involved.
This makes Morgan Stanley the first major US bank to offer bitcoin investments to its wealth management clients. Two of the three funds, Galaxy Bitcoin Fund LP and the Galaxy Institutional Bitcoin Fund LP, will be managed by Galaxy Digital. Regarding this move, Novogratz said: “The money will start coming in early next month.”
Baby Boomers Booming
The Galaxy Digital executive is not the sole name that expects a large number of baby boomers, as JMP Securities has recently predicted that around $1.5 trillion may flow into BTC from wealthy clients of investment banks. The company bases this projection on a modest portfolio allocation, saying that “Around $30 trillion of assets in the U.S. retail wealth management industry currently do not have direct access to bitcoin.”
Al Kelly, the CEO of Visa, also expects crypto to become “extremely mainstream,” and his company has already started the necessary work to permit bitcoin payments at 70 million stores. Companies like Goldman Sachs have also noticed increased institutional demand for Bitcoin, and Deutsche Bank has recently commented that crypto is too important to ignore.
Baby boomers tend to consider bitcoin an asset that has the possibility of not only increasing in value but also protecting one’s savings from inflation.
Novogratz has opinionated that Bitcoin works better as a store of value, compared to a method of payment: