TIGER 21, an exclusive network of high-net-worth investors, entrepreneurs, and executives, has disclosed that $6 billion of its $200 billion portfolio is allocated to cryptocurrency. This allocation reflects a growing institutional appetite for digital assets, particularly Bitcoin as a store of value and inflation hedge.
TIGER 21’s Crypto Investment Strategy
In a Feb. 5 interview with CNBC, Michael Sonnenfeldt, founder and chairman of TIGER 21, confirmed that between 1% and 3% of the network’s assets, roughly $6 billion are invested in digital currencies.
“The areas of digital currencies remain really exciting,” Sonnenfeldt stated. “We have some members that are all in.”
While he did not disclose the specific cryptocurrencies included in the portfolio, Sonnenfeldt emphasized Bitcoin’s growing role as a store of value, particularly for investors seeking financial refuge from economic instability.
Bitcoin vs. Gold: The New-Age Store of Value?
According to Sonnenfeldt, Bitcoin has increasingly entered gold’s territory as a safe-haven asset, particularly in economically unstable regions like Argentina and Lebanon.
“Gold isn’t an inflation hedge, it’s an instability hedge” Sonnenfeldt explained.”
This sentiment aligns with the broader trend of institutional investors viewing Bitcoin as ‘digital gold,’ offering protection against inflation and currency devaluation.
A Shift in Investment Preferences
TIGER 21’s $6 billion crypto allocation reflects a larger trend of institutions increasing their exposure to digital assets. Sonnenfeldt noted that nearly 80% of TIGER 21’s total portfolio is invested in “long-only risk-on assets”, such as public and private real estate and private equity.
Interestingly, TIGER 21’s cash position is now below 10%—the lowest in 17 years—indicating a strong bullish stance on growth assets, including crypto.
TIGER 21’s Expanding Influence
Founded in 1999, TIGER 21 operates on an invitation-only model, requiring members to have at least $20 million in investable assets. With a global presence in 53 cities and over 1,600 members, the network continues to shape investment trends among the ultra-wealthy.
The Broader Crypto Market Context
TIGER 21’s increasing interest in crypto comes at a pivotal time for the industry. The total crypto market cap currently sits at $3.3 trillion, rebounding from a recent downturn that saw $400 billion wiped out in 24 hours on Feb. 2 and 3.
Meanwhile, Bitcoin dominance which hit a four-year high of nearly 63% on Feb. 3 has slightly declined to 61.42%, according to TradingView data.
Conclusion
TIGER 21’s significant crypto allocation underscores the growing acceptance of digital assets among high-net-worth investors. With Bitcoin being increasingly recognized as a hedge against economic instability, institutional players are deepening their exposure to crypto despite market fluctuations.
As the regulatory environment for digital assets continues to evolve, the role of crypto in institutional portfolios is expected to expand further, solidifying its position as a mainstream investment class.
