The Kobeissi Letter
The Kobeissi Letter|Jul 15, 2025 02:45
Bitcoin's next catalyst has arrived: Simply put, institutional capital can no longer ignore the returns that Bitcoin is providing. When an asset provides a return of 90% in one year, it can be ruled an "outlier." However, when an asset provides a 90% CAGR for 13 years (Bitcoin), it can no longer be ignored. Last month, we were invited to @Coinbase's annual State of Crypto Summit. Even the "conservative" funds we talked to were allocating "1% of AUM" to Bitcoin. And, the straw that broke the camel's back was the US Government's sudden adoption of crypto, largely supported by @Brian_Armstrong's battle with the SEC. Currently, there is an estimated ~31 trillion in institutional AUM in the US. If just 1% of US institutional capital flows into Bitcoin, this could drive another ~300B+ into the asset. Factor in global institutional AUM and we could see 1 trillion+ flow into Bitcoin. Bitcoin has simply become too big to ignore.
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