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The investment funds hold a collective bitcoin treasury worth $ 43.2 billion, spread across a variety of vehicles, including bitcoin closed-end trusts and exchange-traded products.
Data from digital asset manager Nickel showed the total figure held by investment funds on behalf of their clients, which includes a range of retail investors, asset managers and institutional investors. More than three-fifths of those funds are based in North America, Nickel said.
Cryptocurrency-related products such as bitcoin have become increasingly popular this year, with London investors having access to their first crypto-exposed products listed this month.
Banks such as Morgan Stanley and Goldman Sachs have also stepped up their offerings for their clients seeking bitcoin exposure, planning undeliverable futures and bitcoin ETFs through partnerships with crypto funds such as Galaxy Digital.
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Nickel said bitcoin holdings of large companies entering the space have now totaled $ 6.5 billion, with 19 companies having publicly declared cryptocurrency investments so far. Thirteen of these companies are based in North America, such as Tesla and MicroStrategy, while three are European.
The investment fund estimated that companies spent around $ 4.3 billion to buy the cryptocurrency over the past two years, which represents a potential windfall of over $ 2 billion.
A survey by Nickel earlier this year showed that 81% of European institutional investors and wealth managers expect an increase in the number of companies using bitcoin for their cash reserves. A third of them also expect this trend to grow dramatically.
Anatoly Crachilov, managing director of Nickel Digital, said the inclusion of cryptoassets in the portfolios of leading global asset managers such as Paul Tudor Jones, Ruffer and Guggenheim Partners was a very important endorsement for the emerging functionality of bitcoins the hedge against inflation.
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Bitcoin and other cryptocurrencies remain extremely volatile, with the largest cryptocurrency having recently suffered several consecutive flash crashes in its price. Bitcoin started showing signs of a recovery earlier on June 15 as it broke above the $ 40,000 mark, although analysts said it was too early to say if the token could return to its all-time high in April of $ 64,829.
The crypto-asset space remains volatile as it moves through the early stages of an adoption curve, Crachilov said alongside the June 15 data.
However, increasing allocations from institutional players and large-scale enterprises should lead to a reduction in this volatility over time, thanks to a longer-term and stickier type of capital brought in by these investors, as well. than a much larger liquidity pool in the crypto ecosystem.
To contact the author of this story with comments or news, email Emily Nicolle
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