But why won't the same people more consistently invest directly in BTC? It wouldn't take much for all those VC investors to prop up the currency/token such that their more indirect investments stands a much better chance of succeeding.
3 main reasons
1/ Practically all VC money (and this applies to the 'Wall Street' money people here talk about) is not someone with a pile of money who can spend as he pleases. It is constrained and monitored and designed/structured for investing in companies.
2/ The hope is that the investment will generate an income stream (BTC in itself won't) as well as capital growth.
3/ The returns could be multiplied (a successful company x a successful new asset class)
Of course, what the individuals involved (or their families) might do with their own play money - once they see where the investments are going - is another matter. A little side-bet always keeps things interesting.