Bitcoin has allowed a different kind of investor to build wealth, says crypto strategist

Longtime crypto bull Meltem Demirors mentioned Tuesday that bitcoin‘s ascent has constructed wealth for a different kind of investor.

The feedback on CNBC’s “Squawk Box” got here sooner or later earlier than a major milestone for the crypto world is scheduled to happen: Coinbase’s Nasdaq debut.

“Here’s what’s great about it for me: Bitcoin has created a lot of wealth for people who weren’t part of the traditional financial system, weren’t money managers,” mentioned Demirors, the chief technique officer at CoinShares, a digital asset funding agency.

She mentioned she acquired into bitcoin when it was round $150 per coin. On Tuesday, it hit yet one more file excessive, trading above $63,000 as buyers awaited Coinbase’s direct itemizing.

The digital foreign money trade’s public debut Wednesday “is going to mint hundreds, if not thousands, of multimillionaires and billionaires who all love crypto and are probably going to take some of their listing proceeds and continue to invest in the crypto ecosystem,” Demirors mentioned.

“There’s really this nice recursive effect where this industry isn’t just about the assets. It’s now really about the companies, which we’ve been investing in for almost a decade now,” she added.

Indeed, Soona Amhaz, a normal companion of crypto enterprise agency Volt Capital, mentioned Coinbase’s direct itemizing is much from the one thrilling improvement for digital belongings.

“The crypto story doesn’t end with Coinbase going public,” she mentioned on CNBC’s “Closing Bell.” “This is very much a stake in the ground for crypto companies being built now.”

Some consider Coinbase could fetch a valuation as high as $100 billion. While such a market cap could be monumental for the crypto trade, Amhaz mentioned what’s extra necessary is constant to increase the quantity of individuals who personal digital belongings across the globe.

“We’re going to see more crypto companies that are building to help on-ramp the next 100 million users into crypto and be exposed to this new financial paradigm,” she mentioned.

Created in 2009, bitcoin is the world’s largest cryptocurrency by market worth. Its worth has soared significantly excessive in current months. As lately as October, bitcoin traded below $11,000 per coin.

One key issue fueling the rise has been additional institutional adoption. Some corporations, reminiscent of Tesla, have purchased bitcoin utilizing money on its stability sheet.

Last month, Morgan Stanley was the primary main U.S. financial institution to announce it will provide access to bitcoin funds for its wealth administration purchasers. Another Wall Street titan, Goldman Sachs, can also be expected to take similar steps for purchasers of its personal wealth administration group.