Why we're bullish on Bitcoin

Updatea month ago
Titan Crypto: Spotlights
This week, we officially launched Titan Crypto, our actively managed portfolio of cryptoassets that we believe are positioned for outstanding long-term returns with minimal correlation to U.S. equities and with attractive hedging qualities.
Over the coming days, we'll continue to send Crypto Spotlights outlining our investment theses on current portfolio holdings. The goal is to give you a better sense for the types of cryptoassets that make it into this new portfolio.
To check out Titan Crypto, be sure to update your Titan mobile app in the Apple or Google Play store now.
Spotlight #1: Bitcoin (BTC)
Thesis: Bitcoin is the world's first and de facto decentralized digital currency. With significant first mover advantage among "store-of-value" digital currencies, the institutional adoption and fixed supply makes it our second most bullish crypto investment at a 27.5% weight.
Decentralized money was out reach, until Bitcoin came along. With its revolutionary network consensus and incentive mechanisms, Bitcoin became the world's first widely adopted cryptocurrency that allows for secure peer-to-peer transactions on the internet. It has the strongest brand name, and its technology is extremely robust: the network has never been successfully hacked over its 12-year existence, while holding more than $800B worth of assets. Over the past decade, its significant first-mover advantage has propelled it to grow with a considerable lead and network effect over other cryptocurrencies that offer similar value propositions.
Bitcoin is the prominent digital store of value and inflation hedge.
Bitcoin's total supply is limited by code to a total of 21 million, making bitcoin inherently scarce. It is immutable, cannot be counterfeited or censored, and has low correlations to other traditional assets. It is now gaining mainstream recognition as a necessary constituent of modern portfolios. Macro factors such as record low interest rates and unprecedented levels of global monetary and fiscal stimulus also add fuel to the fire of awareness and adoption.
Institutional players’ involvement with crypto markets is still very much focused on bitcoin.
There are only a handful of major coins that have sufficient market depth and maturity to accommodate substantial allocations of capital from large institutions. Products and services such as custody services, brokerages, derivatives, and asset management still mainly only support bitcoin. Bitcoin serves as the starting point for most allocators and institutional investors; firms will buy and hold BTC on their balance sheets before any other cryptos. Its price could appreciate naturally as more participation enters the ecosystem.
Whats the data saying: On chain analysis reveals healthy long-term signal for bitcoin throughout this period of volatility
Miners have now begun to re-accumulate after a period of selloffs due to China's crackdown. In addition, ~30% of the affected power has come back online
Long-term investors and whales are also accumulating, buying from short-term investors who have suffered massive losses from the May-June sell-off
Amount of inflow of BTC to know exchange wallets as their BTC reserves are experiencing decline over the last several weeks, indicating diminishing sell-side pressure
Capital in the form of stablecoins is slowly rotating back into the market from the sideline
Where are we heading: Bitcoin's current discounted valuation provides an attractive risk/reward setup
Bitcoin's price has significantly dropped from its peak in mid-April through the end of July 2021, and was trading at near 3-year lows on a market cap / daily on-chain transaction volume basis. Although prices have somewhat rebounded in August, we believe its a great opportunity to accumulate alongside other long-term investors and whales.
For long-term price targets, numerous valuation frameworks such as Stock-to-Flow model and comparison-to-gold approach, and perspectives from investors including ARK Invest and Winklevoss suggest that bitcoin's price has the potential to reach ~$500K.
We believe bitcoin offers one of the most compelling long term, risk reward profiles among assets, crypto and non crypto. The institutional demand is clearly strong as therecognize bitcoin’s significance as a critical monetary asset and a portfolio diversifier.
For the rest of our memo on BTC and more, see our launch materials.
Reminder: Why invest in Crypto?
Growth Runway
We believe the next big tech paradigm shift will be driven by crypto and blockchain technologies. The crypto space is experiencing an extraordinary level of software development and innovation, and has immense growth potential over the coming decade.
It's Still Early
There are many signs suggesting that those who invest in crypto today are still “getting in” near the beginning. There is still a great deal of skepticism and disillusionment from the public at large: typical of any technology that is very early in its life cycle . Existing infrastructure is still too complicated and confusing for mainstream adoption. Even regulators are still debating on how to regulate the space.
Diversification
Crypto is generally uncorrelated to the behavior of other asset classes, and could serve as a strategic allocation in portfolios. Extensive research has shown that a small allocation of cryptos would have consistently and significantly increased both the cumulative and risk-adjusted returns of a portfolio.
Crypto launch call, Monday 8/16 at 4PM ET
Tune in to listen to Clay Gardner (Our Co-CEO & CIO) and Gritt Trakulhoon (lead crypto analyst) discuss the construction of our crypto portfolio and take client questions. Reserve your spot below!
Reserve your spot
Arianna Simpson of a16z, Tuesday 8/17 at 4PM ET
Join us for our next live podcast recording with Andreessen Horowitz's Arianna Simpson this upcoming Tuesday at 4PM ET. Reserve your spot below!
Reserve your spot
Update your app!
To check out Titan Crypto, be sure to update your Titan mobile app in the Apple or Google Play store now.
Onwards, The Titan investment team

Become a Titan investor today.

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 110 Greene Street, Suite 910, New York, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
© Copyright 2021 Titan Global Capital Management USA, Inc. All Rights Reserved.