- Jan van Eck believes Bitcoin could hit $350K as it captures half of gold’s market cap amid growing central bank adoption.
- Despite VanEck’s optimism, institutional investment in crypto remains low, with individual investors driving the majority of ETP funding.
- VanEck’s new fund focuses on fintech startups, emphasizing next-gen payment systems while AI investments surge in 2024.
Bitcoin could reach $350,000, according to VanEck CEO Jan van Eck, based on the assumption that the cryptocurrency will represent half of aggregate gold market capitalization in the coming years. He cited a possibility wherein central banks could start to integrate Bitcoin into monetary systems, something, of course, he says can happen. In fact, as such, he speculates that Bitcoin may soar even higher in the future.
Institutional Hesitance Toward Cryptocurrency
Even though institutions are still only very slightly investing in cryptocurrencies, VanEck maintains a favorable outlook on Bitcoin. Twelve token-based products are currently offered by Van Eck in Europe, according to Van Eck. A little over two billion euros is the total value of these exchange-traded products (ETPs). The majority of this funding, however, comes from private investors.
Consequently, wealth management firms have not yet allocated resources to these products. Van Eck highlighted that few private banks have approved investments in major cryptocurrencies like Bitcoin and Ethereum. This cautious approach reflects the skepticism of institutional players regarding the cryptocurrency market in Europe.
The Shift Towards AI and Fintech
Amid the excitement surrounding Bitcoin, VanEck is also investing in the fintech space. The company recently launched a fund focusing on early-stage venture capital. This fund targets companies building next-generation payment systems, particularly those leveraging stablecoins.
Furthermore, the fund aims to support founders in developing innovative blockchain solutions. Jan van Eck expressed enthusiasm for supporting disruptive companies in fintech. This reflects VanEck’s commitment to embracing transformative opportunities.
In addition, artificial intelligence has experienced a surge in funding in the tech sector. In 2024 alone, investors invested $26.8 billion in AI investments. This represents a focus on AI startups. However, despite AI’s prominence, funding is also flowing into various other sectors. For example, biotech and manufacturing received around 9.5% of total funding during the same period.
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