My theory is that hedge funds are not going to throw money into BTC anytime soon.
Having worked in IT for 6 years at one of the top 5 hedge fund companies, I learned how they operate. Basically, they DO NOT take risks! BTC is just too volatile for them to invest in. They may have one or two guys in the Value department looking at BTC and keeping an eye on it to see where the future may lead, but I am pretty certain they are not going to make any large investments, if any at all. People get fired all the time for even suggesting risky trades and for coming across as "gambling". I once asked a trader what he thought of investing in stem cells and he laughed saying they wouldn't even consider it being that its way too volatile, and as we know BTC is insanely volatile. What they would do is play with the arbitrage opportunities which may explain all the money going through China. There is basically no risk in doing that.
Anyway, this is just my .02. Im not a trader, though I do understand certain things having studied finance at one point. I wish I knew what I know now while I was working there. I do know their trades are very conservative and right now the chance for loss in BTC is too great. Clients would get concerned.
The smaller start-up funds in the industry could jump in to BTC, but I just cant see the big whales getting involved anytime soon unless more arbitrage opportunities pop up.
Having worked in IT for 6 years at one of the top 5 hedge fund companies, I learned how they operate. Basically, they DO NOT take risks! BTC is just too volatile for them to invest in. They may have one or two guys in the Value department looking at BTC and keeping an eye on it to see where the future may lead, but I am pretty certain they are not going to make any large investments, if any at all. People get fired all the time for even suggesting risky trades and for coming across as "gambling". I once asked a trader what he thought of investing in stem cells and he laughed saying they wouldn't even consider it being that its way too volatile, and as we know BTC is insanely volatile. What they would do is play with the arbitrage opportunities which may explain all the money going through China. There is basically no risk in doing that.
Anyway, this is just my .02. Im not a trader, though I do understand certain things having studied finance at one point. I wish I knew what I know now while I was working there. I do know their trades are very conservative and right now the chance for loss in BTC is too great. Clients would get concerned.
The smaller start-up funds in the industry could jump in to BTC, but I just cant see the big whales getting involved anytime soon unless more arbitrage opportunities pop up.
You don't think some would want in at $300? I mean the charts are there for all to see and it looks like Bitcoin is going to be regulated as an asset unless something weird happens.