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.  

Leave a Reply

Your email address will not be published.

Related

Coins Capital Review, Coins-Capital.com – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! https://coins-capital.com/ Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, GlobalTrades.io – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is globaltrades.io scam or legit” and much more! https://globaltrades.io/ GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]

Belgium Regulator Sets To Impose New Crypto Ads Rules

The Belgium government has mandated that every firm offering crypto advertisements should register with it before launching any campaign. Henceforth, any crypto advertisement without the government’s backing would be treated as an offense with heavy consequences. According to the report, the Financial Services and Markets Authority (FSMA) of Belgium recently announced that every potential crypto […]