Bitcoin becoming 'more central’ to portfolios as its volatility cools, Coatue's Philippe Laffont says

Coatue founder Philippe Laffont has shared insights on the firm's approach to investing in Bitcoin and cryptocurrency more broadly, reflecting on how the landscape has evolved. Here’s a summary of the key themes he has discussed:

### **1. Not Investing in Bitcoin Sooner**

Laffont has acknowledged that Coatue was relatively late to investing in Bitcoin compared to other firms. One of the reasons for this was the firm's initial skepticism about the cryptocurrency's long-term viability and regulatory risks. Over time, as the ecosystem matured and Bitcoin demonstrated its resilience, Coatue became more comfortable entering the market.

### **2. The Shrinking Cost of Entry**

One of the key developments Laffont has highlighted is how the cost of entry into Bitcoin has significantly decreased for institutional investors. Early on, regulatory uncertainty, lack of infrastructure, and high fees made it challenging to invest in Bitcoin. Today, the ecosystem has become more robust, with better custodial solutions, institutional-grade trading platforms, and clearer regulatory frameworks, making it easier and more cost-effective to invest.

### **3. Evolving Role in Portfolios**

Laffont views Bitcoin as transitioning from a speculative asset to a potential store of value or hedge against inflation. While Coatue remains cautious about the broader crypto ecosystem, Bitcoin's decentralized nature and finite supply make it an attractive option as a digital gold. The firm has also explored other cryptocurrencies and blockchain-based projects, but Bitcoin remains a core focus.

### **4. Coatue's Investment Strategy**

Coatue has taken a diversified approach to crypto investments, participating in venture rounds for blockchain startups and allocating capital to Bitcoin and Ethereum. The firm also emphasizes the importance of partnerships with traditional financial institutions to bring crypto to a wider audience.

### **5. Outlook on the Crypto Market**

Laffont is optimistic about the long-term potential of the crypto space but remains cautious about near-term volatility. He believes that the industry must continue to address challenges like energy consumption (especially in proof-of-work systems) and regulatory oversight.

Would you like to delve deeper into Coatue's crypto portfolio or their strategy for other sectors?