If the end of the year for Bitcoin (BTC) currently rhymes with bullish movement, another major event will have marked the news of cryptocurrency. This is the increased interest of institutional investors in the asset as illustrated by investments from MicroStrategy, Square and soon to be Guggenheim. Based on the latest statements from CEO Larry Fink, it wouldn’t be surprising to see Blackrock join the list soon. The leader said that bitcoin was now one of his company’s targets after the recent performance of the asset.
Bitcoin could evolve into a global market.
Interviewed by the CNBC a month ago, Rick rieder, Chief Investment Officer of BlackRock, spoke highly of bitcoin. He explained in particular that the growth potential of cryptocurrency is so huge that it would eventually take the place of gold in the economic system. This time it’s the CEO’s turn BlackRock to make similar remarks during the Council on Foreign Relations. “Bitcoin has caught the attention and imagination of many people. It has not yet been tested, it is rather small compared to other markets. Can it evolve into a global market? It’s possible »He declared with optimism.
The comments made by the CEO of BlacRock hint at the company’s next entry in the list of bitcoin-exposed institutions. One thing that would not be surprising in view of the scale taken by Grayscale’s Bitcoin Trust which particularly attracts companies. The latest example is nothing other than this from Guggenheim who said he was prepared to invest $ 500 million in the fund manager. While waiting to take the plunge, she filed with the Securities and Exchange Commission (SEC) a request to increase its exposure to the asset.
The spread of institutional adoption of bitcoin
Pending the formalization of the investment of BlackRock in bitcoin, it is possible to state that the company has already exposed itself to the assets. She indeed holds 15.2% stake in MicroStrategy company who stood out for having acquired a significant amount of Bitcoin this summer. In recent weeks, the market has recorded a shortage of new bitcoins following the rush of institutions. Even the price of the asset, which has only increased during this period, will not have overcome the buying fever of the latter. Based on data provided by Pantera Personal-Financial.com, PayPal who has just entered the cryptocurrency market would thus buy nearly 70% of the new bitcoin supply.
Long awaited and then feared, the arrival of institutional investors once effective is now feared by the community. The prospect of bitcoin exposure to further mainstream in this sector is a welcome addition to asset adoption generally.