Speaking at Coinbase’s State of Crypto Summit in New York, Coatue Management founder Philippe Laffont said Bitcoin’s increasingly consistent volatility and institutional interest are making it a more central asset in investment portfolios.
According to Laffont, despite Bitcoin’s 13% increase so far in 2025, its volatility has decreased significantly compared to previous years. BTC’s sharp price swings have caused Coatue to avoid investing in the past. But that’s changing now. “The cost of entry into Bitcoin may be decreasing. If beta is decreasing, that would be really interesting,” Laffont said, noting that Bitcoin’s beta, a measure of volatility relative to the market, has decreased over time.
The launch of Bitcoin ETFs by giants like BlackRock is a clear indication that BTC is maturing, according to Laffont. He also recalled that Bitcoin lost more than 60% of its value in 2022, but this decline was more striking compared to the fluctuations experienced, for example, after Trump's tariff announcement in April 2025.
“Bitcoin is down only 5%, while Nasdaq is down more than 6% between April 2nd and April 10th. This shows that Bitcoin is now becoming a more resilient asset to risk events in the market,” he said.
Additionally, the rate at which coins held in Bitcoin wallets for at least a month are being sold out has dropped significantly, suggesting that investors are moving away from short-term speculation and starting to view Bitcoin as a long-term store of value.
Pointing out that Bitcoin’s share in total global wealth is still very low (0.4%) at around $2 trillion, Laffont said that this rate will inevitably increase over time:
“If people continue to believe that Bitcoin is valuable, then that asset will become more valuable over time, which means it should become more central in portfolios.”
Despite this, Laffont warned investors that Bitcoin’s weight in the portfolio should not be exaggerated:
“Even if you think Bitcoin is going to be important, don’t put a large portion of your portfolio into it. A small but long-term position can make you less stressed and more profitable.”
Laffont, who admitted that Coatue had previously missed the Bitcoin opportunity, attributes this mostly to their inability to think simply. According to Laffont, in the investment world, it is usually more profitable to focus on assets that people believe are valuable, rather than complex models:
“For something to be valuable, everyone has to believe it is valuable. It was that simple, and we missed it.”
Technology-focused hedge fund Coatue has invested in cryptocurrency and technology companies such as Dune Analytics, Bitcoin miner Hut 8 and artificial intelligence firm CoreWeave. CoreWeave also has a partnership with Bitcoin miner Core Scientific.
Dividing his investors into three, Laffont said that there are those who leave crypto completely to themselves, those who question why Bitcoin was entered late, and cautious investors who want to stay away from crypto. However, he stated that this cautious audience is decreasing a little more every year:
“This group of abstainers is disappearing. They are becoming smaller and smaller every year.”
*This is not investment advice.
