TIGER 21 Allocates $6 Billion to Crypto, Bitcoin Becomes New Gold

TIGER 21, an exclusive network of high net worth investors, entrepreneurs, and executives, has allocated up to $6 billion worth of crypto into its $200 billion portfolio, according to its founder and chairman, Michael Sonnenfeldt. In an interview with CNBC on Feb. 5, Sonnenfeldt revealed that the network has allocated between 1% to 3% of its assets into digital currencies.

Sonnenfeldt highlighted the excitement surrounding digital currencies among TIGER 21's members, with some even going "all in" on the asset class. He noted that Bitcoin has entered the realm of gold as a store of value and an "instability hedge" for individuals in countries like Argentina and Lebanon, where economic uncertainty persists. Sonnenfeldt explained that while gold is for traditionalists, Bitcoin offers a new-age alternative, both perceived as storehouses of value not subject to government fiat.

TIGER 21 operates on an invitation-only model, requiring investors to have at least $20 million worth of investible assets to be eligible. Since its founding in 1999, the company has expanded to 53 cities worldwide, with a member base of over 1,600. The network's $6 billion crypto position reflects a growing trend of institutions allocating more funds into the crypto market as the regulatory environment in the United States becomes clearer.

Sonnenfeldt disclosed that nearly 80% of TIGER 21's $200 billion portfolio is in "long-only risk-on assets" such as public and private real estate and private equity, with its cash position below 10% for the first time in 17 years. However, he did not reveal which cryptocurrencies the network has allocated in its portfolio.

The crypto market cap currently sits at $3.3 trillion and has partially recovered from the Feb. 2 and 3 market crash, which saw around $400 billion wiped off its value. Bitcoin dominance has since dropped to 61.42% from its four-year high of nearly 63% on Feb. 3, according to TradingView data.