Bitcoin Attracts Investments from Pension Funds and Endowments

Bitcoin has not only attracted the attention of asset management firms but also endowments and pension funds. After the top digital asset claimed $42,000, some crypto experts claim it would attain a $1 trillion market cap soon.

Allocations are Increasing

Bloomberg reported that money in Bitcoin is now coming from pension funds, hedge funds, endowments, and other traditional entities. Grayscale CEO Michael Sonnenshein said:

“We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions and endowments. The sizes of allocations they are making are growing rapidly as well.”

Grayscale now has $23 billion in assets under management after aggressive investments from institutional investors. According to on-chain data resources, Grayscale now owns 3% of coins in circulation.

Pension funds and endowments are hedging Bitcoin in anticipation of central banks’ loose policies. People now see Bitcoin as inflation-resistant because the leading cryptocurrency has a lot of potentials.

Recently, giant insurance company Massachusetts Mutual Life Insurance Co. invested $100 million in the top digital currency. The $100 million investment represents only 0.04% of MassMutual’s value.

Famous venture capitalist Chamath Palihapitiya recently predicted the flagship cryptocurrency would reach $200k in the future. However, he did not tell a specific date for prediction accomplishment. “I don’t know… five years, ten years, but it’s going there, and the reason is because every time you see all of this stuff happening, it just reminds you that, wow, our leaders are not as trustworthy,” said Palihapitiya, founder and CEO of investment firm Social Capital.

The 51 billion dollars investment company Jefferies reportedly reduced gold bullion holdings. Jefferies’s head of equity strategist explained the company reduced gold holdings to add Bitcoin to the portfolio. Financial experts now compare Bitcoin with gold due to the same functionalities, such as scarcity and good hedge ability.

On Monday, the trading session has become the victim of massive selling pressure as approximately $200 billion has liquidated. The top-ranked cryptocurrency is down 13.28% in the previous 24-hours and is exchanging hands at $35,000. Ethereum, on the other hand, has also decreased by 16.40% over the day. The global crypto market cap has reduced to $945 billion after breaking above 1$ trillion. Bitcoin’s market cap is currently standing at around $652 billion.  

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