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Global investment funds now hold more than $ 43 billion in bitcoin on behalf of their clients, according to a Financial News report. Companies’ bitcoin holdings, meanwhile, totaled $ 6.5 billion.
Anatoly Crachilov, CEO of Nickel Digital – the company that provided the data behind the report – told the Financial Times that the inclusion of bitcoin in the portfolios of the world’s top asset managers was “a very important endorsement for the emerging functionality of bitcoin as a hedge against inflation. “
For example, global asset manager Paul Tudor Jones recently spoke out on including bitcoin in his investment portfolio. Jones yesterday highlighted bitcoin’s strengths as an asset, sharing that he views it as a portfolio diversifier to protect his wealth over time.
Likewise, as more institutional investors open up to bitcoin exposure, banks and asset managers are looking to capitalize on the movement. Goldman Sachs, for example, has been very active in the bitcoin space. The investment bank launched a derivative product based on the price of bitcoin in April and announced that it will soon offer bitcoin investment vehicles to its private clients in March.
Increased institutional adoption can bring benefits to bitcoin and its investment ecosystem, Crachilov told the Financial Times.
“The increase in allocations to large institutional investors and companies should lead to a reduction in [bitcoin’s] volatility over time, ”he said, due to a“ longer-term, stickier type of capital brought in by these investors ”.
Crachilov later added that increased exposure to bitcoin by institutional investors would also result in a “much larger liquidity pool” in the ecosystem.
Data from Nickel Digital also showed that among the current investment funds that hold bitcoin, three-fifths of the total are based in North America. Additionally, many companies have added bitcoin to their balance sheets, with corporate bitcoin holdings reaching over $ 6.5 billion, a figure 81% of European institutional investors and wealth managers surveyed by Nickel expect. to see grow.
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