[Analysis] Institutional Cryptocurrency Adoption — ‘How’ and ‘Why’ Matters More than ‘When’

Many long-term crypto bulls take for granted inevitable institutional investor participation and adoption, often without thinking through the How or the Why, and instead wondering perennially about the When. In the October issue of his thematic overview series, Evan Feng of Tapestry Capital leverages his past life as a buy-side analyst to not only think through why some of the more common hedge fund and mutual fund would decide on initial allocations to digital assets, but how specifically and numerically that decision would work its way through the existing market structure via a modeling exercise.

As it turns out, urgent net inflows against the backdrop of a disinflationary asset does present a very real catalyst for price appreciation, but it all hinges on the long-term fundamentals of the asset class, which may not look quite as familiar to traditional investors at first blush.