As traditional financial giants like BlackRock and Fidelity enter the fray, the rules of the game in the crypto market have changed. Many people are curious: how do institutional investors layout in the crypto market? What investment strategies do they have that ordinary people can learn from? As an analyst who has long studied institutional trends, I will unveil the investment logic of institutions today, helping you to make money by standing on the shoulders of giants.
First strategy: Long-term layout, ignoring short-term fluctuations. The biggest difference between institutional investors and retail investors is that they focus more on the long-term value of assets rather than short-term price fluctuations. For example, after BlackRock buys Bitcoin, it will hold it for years or even longer, and will not easily sell it due to short-term pullbacks. Data shows that in this cycle, Bitcoin's peak-to-trough drawdown was only 32%, much lower than in the previous two cycles, because of the long-term holding by institutional funds, creating a liquidity buffer effect. Ordinary people can learn from this strategy by choosing mainstream coins with long-term value, holding them for the long term, and not being influenced by short-term market fluctuations.
The second strategy: Diversify investments to reduce risks. Institutional investors do not put all their funds into one target but instead engage in diversified asset allocation. For instance, they may invest in various types of crypto assets such as Bitcoin, Ethereum, RWA products, crypto ETFs, etc., and even allocate some traditional assets like stocks and bonds to disperse risk. Ordinary people can also adopt this strategy by not putting all their money into one currency but instead diversifying investments across multiple different targets and fields to reduce the risks posed by the volatility of a single asset.
The third strategy: Focus on compliance and choose safe investment channels. Institutional investors place great importance on compliance, and they only choose platforms and products that have regulatory qualifications and operate in a standardized manner for investment. For example, the Bitcoin ETF launched by BlackRock is a compliant product approved by the U.S. SEC; Fidelity only collaborates with qualified crypto custody institutions. When investing, ordinary people should also prioritize compliant platforms and products, avoiding those that lack regulation and have higher risks, in order to safeguard their asset security.
In addition to these three strategies, institutional investors also pay great attention to research and data analysis. They conduct in-depth studies of the market and projects through professional teams and tools before making investment decisions. Although ordinary people do not have professional teams, they can utilize publicly available data analysis tools, such as Glassnode, CoinGecko, etc., to understand market dynamics and project situations, thereby improving their investment success rates. If you want to learn about the data analysis tools and research methods commonly used by institutions, follow me @链上标哥 to avoid getting lost!
