The Wealthy Have FOMO Too: Why Institutions Chase the Same Crypto Dream

Affluent investors aren’t immune to the herd mentality that plagues ordinary traders—they simply have deeper pockets. When MicroStrategy and El Salvador began aggressively accumulating Bitcoin, institutional capital remained largely on the sidelines. Even those who grasped the opportunity’s potential moved cautiously, unwilling to commit without clearer signals.

Everything shifted once MicroStrategy’s massive profits became public knowledge. Suddenly, a consensus crystallized within institutional circles: cryptocurrency merited serious capital allocation. Yet by the time these heavyweight players decided to act on this realization, Bitcoin had already surged. Rather than chase BTC at premium prices, institutional money pivoted its focus toward Ethereum, betting that ETH offered better entry points.

The competitive scramble didn’t stop there. XRP emerged as the next target, with institutions racing to position themselves ahead of the anticipated XRP ETF launch. What unfolded was a reversal of traditional market dynamics—instead of leading the charge, major players found themselves trapped in a frantic game of catch-up, each terrified of arriving late to the party. This institutional FOMO created its own momentum: no player wanted to be left holding the bag when the next narrative shift occurred.

The irony is stark. Whether retail traders or institutional funds, market participants appear remarkably similar in their behavior patterns. Both chase momentum, both fear missing out, and both shuffle their portfolios when consensus begins forming. The only difference is the zeros in their account balances—and perhaps, the slightly delayed timing of their panic buying.