According to Chung Seok-moon, the CEO of the Presto Research Center in South Korea, the “real” Bitcoin (BTC) bull run has not yet started. Chung, who previously worked at Korbit, South Korea’s first crypto exchange, believes that Bitcoin is still in its early stages when it comes to institutional funds. He is optimistic about the future of the crypto markets, especially after the United States Securities and Exchange Commission approved Bitcoin spot exchange-traded funds (ETFs) earlier this year. Chung believes that this approval will lead to a significant increase in investment in the market.
Chung argues that traditional financial asset management companies that have previously ignored cryptoassets will now look to participate in the market. He believes that Bitcoin, with its low correlation with traditional financial assets, will become a valuable asset to include in investment portfolios. According to Chung, not including Bitcoin ETFs in portfolios could be seen as a “possible dereliction of duty” for asset managers. He predicts that institutional investors will be forced to inject funds into crypto in the future, especially in South Korea where retail investors currently dominate the market.
Chung predicts that institutional funds will start flowing into Bitcoin in earnest after mid-April. He notes that many financial institutions typically go through a “seasoning period” of about three months for new investment products before actively trading them. Chung believes that once this period is over, Bitcoin’s price is likely to increase. He also suggests that if Washington decides to gradually ease interest rates, leading to a release of funds, Bitcoin could receive a further boost. Another South Korean analyst also predicted that Bitcoin’s price growth will continue in the future as optimism for BTC grows in the nation.
Despite the optimism surrounding Bitcoin’s future price growth, South Korean regulators have ruled out approving Bitcoin spot ETFs until after parliamentary elections in April. However, Chung believes that the SEC’s approval of Bitcoin spot ETFs in the United States has opened the floodgates for a real BTC run globally. He anticipates that traditional financial asset management companies will increasingly participate in the crypto market, leading to more demand for Bitcoin. This increased institutional participation could potentially lead to a spike in demand, particularly in South Korea where retail investors currently dominate the market.
Chung highlights the importance of incorporating assets with low correlations into investment portfolios to maintain overall rate of return. He argues that Bitcoin’s low correlation with traditional financial assets makes it an attractive asset for inclusion in portfolios. He predicts that as more asset managers realize the benefits of including Bitcoin ETFs in their portfolios, the demand for cryptoassets will increase. With institutional funds expected to flow into Bitcoin after mid-April, Chung believes that Bitcoin’s price could see a significant increase in the near future.
