A few days ago, Bitcoin hit its all-time highs. At the same time, institutional investors invested the second highest amount on record in cryptocurrency funds.
As the cryptocurrency market shows an increase in institutional investments, with large purchases made by an increasing number of companies, it has been correlated with a rebound in the markets.
According to a Reuters report citing data from digital asset manager CoinShares, large-scale crypto funds posted a $ 429 million inflow last week alone. The largest weekly entry in history was 468 million recorded three weeks ago.
The data showed that the sector jumped to an all-time high of $ 15 billion in assets under management (AUM) so far this year. By comparison, there were 2.57 billion in AUM at the close of 2019. So far, bitcoin has attracted inflows of $ 4 billion in 2020.
It is also important to highlight the results obtained by asset and fund management companies. At the end of the second quarter of 2020, Fidelity reported in a survey of nearly 800 institutional investors that «36% owned crypto assets.» For its part, Evertas shared that respondents believe that «hedge funds will dramatically increase their holdings of crypto assets.» He also projected that «90% of institutional crypto asset holders expect to invest even more in Bitcoin next year.»
Interest in acquiring BTC will continue to grow
The interest is clear, and analysts say that the number of institutional investors attracted to the digital asset is likely to increase, as few will want to be left behind in the race to buy this popular deflationary cryptocurrency.
An example that proves this is the case of MicroStrategy, a company that is listed on the Nasdaq stock market. By acquiring significant amounts of BTC, MicroStrategy believes that this move will have no adverse effects on its share price. Thus provide a positive signal to other institutional investors who will view cryptocurrencies as a serious asset class.
Bullish prediction of Bitcoin and other cryptocurrencies
The price of Bitcoin (BTC) has quadrupled in the last nine months, which means that another similar rally will put $ 100,000 on the table for the foreseeable future. This is predicted by Dan Tapiero, co-founder of 10T Holdings, who summarizes the evolution of the price of BTC in recent months, and makes clear its long-term potential: “It is remarkable to think that only 9 months ago bitcoin was at 4000. It has had almost 500% recovery until today. The 500% rally from here puts us at 100k btc. «
Apart from Bitcoin, some other cryptocurrencies have also registered an increase. Ethereum, the second largest cryptocurrency after bitcoin, has risen more than 20% in the last seven days. Meanwhile, XRP, the third on the list, is up almost 25%. Likewise, Cardano, Litecoin, Stellar and Polkadot, which are among the top 12 cryptocurrencies, also posted higher gains.
Institutional investors will play an important role in securing the future of cryptocurrencies. But will do so the normalization of their payments by PayPal, millionaire investors, companies that believe in blockchain technology, and even minority investors.
The widespread interest in cryptocurrencies continues to grow and will continue to do so. However, a regulatory framework around them is still pending. A point that translates into a lack of security in its acquisition and custody. Faced with these security problems, the first cryptocurrency investment funds have emerged.
One of the ways to safely invest in Bitcoin and other cryptocurrencies is through regulated funds such as BTV Fund. It is a gateway to the cryptocurrency sector, with a structure that mainly reduces risk, while allowing exposure to these attractive returns.
It is an investment vehicle that allows you to invest in crypto assets in a conventional way, solving the problems of purchase, custody and justification of the origin of the benefits obtained. In addition, it allows you to do it without being a specialist in risk analysis in this sector and making the investment as safe as possible.