Philippe Laffont, founder of Coatue Management, highlighted a significant shift in Bitcoin’s investment appeal during the Coinbase Crypto State Summit in New York City. Despite Bitcoin’s notorious volatility historically deterring institutional investors, recent trends indicate a reduction in its price fluctuations, enhancing its attractiveness as a portfolio asset. Laffont emphasized that Bitcoin’s nearly 13% gain in 2025 is accompanied by a declining volatility metric, suggesting a more stable risk profile compared to previous years.
He further explained that the narrowing of Bitcoin’s Beta value, which measures its volatility relative to the broader market, could lower the entry barrier for investors. This evolving dynamic is encouraging hedge funds and traditional financial institutions to reconsider Bitcoin’s role within diversified investment strategies. Notably, the growing acceptance of Bitcoin by major players like BlackRock, particularly through the promotion of Bitcoin spot ETFs, underscores the asset’s increasing institutional legitimacy and market integration.