The three key conditions for top global hedge funds to invest in Bitcoin.

Recently, the head of investment research at a well-known institution, one of the largest hedge funds in the world, elaborated on three key conditions that the institution needs to meet in order to consider investing in Bitcoin during a media interview.

The primary condition is a significant reduction in Bitcoin's volatility. Currently, Bitcoin's volatility is about ten times that of the US dollar and even higher than the volatility of the Venezuelan currency. The official emphasized that to become a diversified investment tool, Bitcoin first needs to improve its stability and reduce price fluctuations.

Secondly, the Bitcoin market needs to have higher liquidity. Finally, and this is crucial, is the establishment of a clear and defined regulatory framework. The person in charge pointed out that as the regulatory ecosystem surrounding Bitcoin and other cryptocurrencies improves, it will attract a more diverse group of investors. This not only enhances market liquidity but also indirectly reduces price volatility. She particularly emphasized that the clarity of regulation is the aspect she is most concerned about, but it is still unclear when the United States will establish a clear regulatory system.

When discussing the nature of Bitcoin, the person in charge stated that she believes Bitcoin does not fit the definition of traditional currency. However, she predicts that over time, Bitcoin may gradually evolve into a "digital gold."

It is worth mentioning that this global top hedging fund was established in 1975 and currently manages assets exceeding $150 billion. The founder of the institution publicly praised Bitcoin last month as "an astonishing innovation" and stated that "it has captured our high attention." These remarks seem to suggest that the institution holds a positive attitude towards Bitcoin, but specific investment decisions still depend on the extent to which the above conditions are met.