Philippe Laffont, founder of Coatue Management, spoke at Coinbase’s State of Crypto Summit in New York City on Thursday, emphasizing Bitcoin’s emerging role in traditional investment portfolios amid decreasing volatility.
Laffont noted that Bitcoin is transitioning from speculative to foundational status, with price behavior starting to mirror that of established markets. He remarked that Coatue had previously avoided Bitcoin due to its volatility but now sees potential as the entry cost diminishes.
Institutions buy in as behavior of holders changes
He highlighted Bitcoin’s nearly 13% growth in 2025 and observed that price movements feel more stable compared to previous years. For instance, in 2022, Bitcoin suffered a 60% drop, while in April 2025, it fell just 5% after new tariffs, demonstrating maturing market behavior.
Laffont pointed out a declining trend in new Bitcoin wallets selling holdings quickly, indicating a shift towards long-term holding among investors, which enhances institutional confidence.
He noted the involvement of major firms like BlackRock in Bitcoin ETFs, suggesting that institutional interest is growing, potentially leading to Bitcoin’s necessity in investment portfolios. Laffont mentioned that Bitcoin represents only $2 trillion of the $500 trillion global wealth, but its value could become more significant over time.
Laffont admits missing the early wave and warns against overexposure
While Coatue has made some strides into crypto investments, Laffont expressed regret for not investing more significantly in Bitcoin, attributing his hesitation to overthinking. He advised others to allocate a small percentage (1-4%) of their assets to Bitcoin for inflation protection.
He described his clients as divided into three groups: those who trust his advice, those questioning his earlier hesitations, and the cautious skeptics, whose numbers are dwindling.
Even with his newfound enthusiasm for Bitcoin, Laffont cautioned against making it a dominant portion of any portfolio. He recommended maintaining a smaller, steady position over a long term for better returns.
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