Philippe Laffont, the founder and chief investment officer of Coatue Management LLC, recently addressed the evolving landscape of cryptocurrency investment during his speech at Coinbase’s State of Crypto Summit in New York City. Laffont’s insights come at a time when bitcoin has demonstrated significant price volatility, but he argues that several emerging factors are contributing to the cryptocurrency’s increasing legitimacy and potential role in investment portfolios.
Bitcoin has experienced a notable resurgence, surging nearly 13% in the early part of 2025. Laffont emphasized that while the cryptocurrency’s volatility has historically been a concern for investors, it appears to be diminishing over time. This reduction in volatility, or beta—an indicator of an asset’s price fluctuations compared to the overall market—may be paving the way for a wider acceptance of bitcoin among institutional investors, which could further stabilize its price.
In a significant development for the cryptocurrency market, Laffont pointed to the involvement of major asset management firms, such as BlackRock, which has actively pursued the introduction of bitcoin exchange-traded funds (ETFs). This participation from institutional players reflects a growing maturity in the crypto space and suggests that bitcoin is becoming an increasingly mainstream asset.
The performance of bitcoin relative to traditional markets has drawn attention as well. In 2022, bitcoin suffered a decline exceeding 60%, while the Nasdaq Composite Index dropped 33%. However, Laffont noted that during periods of market stress, such as the announcements of tariffs by President Donald Trump in April 2018, bitcoin exhibited resilience, falling only 5% compared to the Nasdaq’s more pronounced decline.
Laffont also shared data indicating that the number of bitcoin wallets holding their positions for at least a month has diminished significantly. This trend suggests that more investors are opting to retain their bitcoin holdings for the long term, rather than seeking immediate profits through trading—a shift that may strengthen perceptions of bitcoin as a viable investment vehicle.
Despite bitcoin currently representing a modest fraction of global wealth, estimated at around $2 trillion out of a total of $500 trillion, Laffont posits that its increasing recognition as a valuable asset warrants more significant inclusion in investment portfolios. He stated, “If bitcoin continues to grow and be appreciated by a larger segment of the population, then it has to become more central to a portfolio.”
Reflecting on his own investment decisions, Laffont admitted that there was a time when he undervalued bitcoin’s potential. He candidly expressed a sense of regret, stating, “Every night, I wake up at about three in the morning and I go, ‘What an idiot. Why didn’t I invest more in bitcoin?'” His overarching investment philosophy prioritizes simple, straightforward ideas over more complex strategies. This approach has led him to reassess bitcoin’s fundamental value proposition: that as long as a growing number of people consider it valuable, its worth will continue to ascend.
Laffont categorizes his client base into three distinct groups: those who prefer a hands-off investment approach, clients questioning his previous reticence regarding bitcoin, and the conservative investors comfortable with traditional assets but wary of cryptocurrencies. He noted that the latter group, which he termed the “dying population,” is gradually diminishing. Laffont expressed optimism regarding the gradual acceptance of bitcoin among institutional investors and the evolution of their attitudes toward cryptocurrencies.
While acknowledging his evolving perspective on bitcoin, Laffont urged caution among potential investors. He advised attendees at the summit to maintain a balanced approach: “For those of you that think bitcoin is going to be important, my recommendation is never make it such a big portion of your portfolio that it becomes the driving factor of the portfolio.” He suggested that a measured position, one that can be retained over a decade, is more advantageous than a larger stake that incurs constant worry.
As the cryptocurrency landscape continues to shift, the integration of bitcoin into broader investment strategies appears increasingly plausible. While challenges related to volatility and regulatory scrutiny remain, Laffont’s insights suggest a growing confidence in the asset’s future within institutional portfolios. As more investors recognize bitcoin’s potential to act as a hedge against inflation and a legitimate asset class, its role in finance may evolve, serving as a barometer for broader acceptance of digital currencies in the traditional investment landscape. The end result could be a gradual paradigm shift, where cryptocurrencies like bitcoin occupy a more prominent space in investment portfolios, providing a unique opportunity for diversification and long-term growth amidst volatility.