Institutional investors are on the verge of getting another tool for accessing crypto assets as they have already invested billions of dollars in Bitcoin (BTC). According to analysts, these investors don’t want to sell BTC anytime soon.
Today the main US index provider S&P Dow Jones indices (S&P DJI) revealed plans to introduce cryptoasset indices that will only play into the hands of large investors. The company has entered into a partnership with Conclude, a New York City-based crypto asset software and data company.
According to S&P DJI, these new index features will make it easier for investors to access this emerging technology-driven asset class while mitigating some of the general risks associated with this traditionally speculative market.
Reportedly, if the 2017 BTC rally was due to private investors, the nod for the 2020 bull run should likely go to the institutes. Institutions have taken the lead in 2020, as have companies like MicroStrategy and Square as well as discerning traders like Paul Tudor Jones and Stanley Druckermiller are suffering from Bitcoin fever.
Meanwhile it is Chicago Mercantile Exchange The BTC futures contract is also robust in volume, with open interest recently surpassing the $ 1 billion threshold.
“CME Bitcoin Futures Open Interest hit a new all-time high of over USD 1 billion in fictitious dollars. Assets under management … https://t.co/dPdDarcO0M
The broader cryptocurrency market has also benefited as a rising tide appears to be lifting all boats again. However, according to some market leaders, the institutes are not leading the altcoin rally – including the one that takes place in Litecoin (LTC) and ranks 5th by market capitalization.
@AlexSaundersAU @RaoulGMI @SatoshiLite I am not saying that the ghost chains cannot gather. I’ll say I don’t know https://t.co/S0CBhu2WDG
According to a well-known trader named Crypto_Ed_NL on Twitter, institutions don’t seem to have any intention of selling BTC for even $ 22,000 or $ 30,000. saying “They have much higher goals” in the stadium from $ 100,000 – $ 300,000. This is a similar prediction from the Winklevoss twins, who they believe have a conservative Bitcoin price estimate of $ 500,000.
@tyler Your $ 500,000 price tag of $ 9 trillion for BTC is ridiculous though. that assumes that nobody holds gold #
Now that the bulls are back in control and the BTC price has risen by around 43% in November alone, market participants are already looking to Bitcoin’s next major milestone. Among them Charlie Morris, founder and chief investment officer of ByteTree Asset Managementwho suggested that Bitcoin has more runway for profits, saying “It’s strange that Bitcoin hasn’t risen higher yet.” He noted the ease with which nearly $ 20,000 was recaptured, as well as a strong narrative and robust network.
In addition, Bitcoin products such as those from Grayscale investmentare among other things for HodlerMorris pointed out that once these companies buy bitcoins, they hold onto it for a lifetime.
“Even during the 2018 bear market, these funds stuck and even managed a modest accumulation. They now hold 599,533 BTC together,” he said, adding, “since mid-October they have accumulated 100,000 BTC, which is enormous.”
As reported this week, it was $ 5.3 billion. Guggenheim Macro Opportunities Fund said it could allocate up to 10% of its net worth.
And as Danny Scott, CEO of UK Bitcoin Exchange CoinCorner pointed out that the amount of BTC held on exchanges is dropping to unprecedented levels, resulting in fewer sales and more long-term positions.
Bitcoin as reserve assets
As Bitcoin continues to grow in popularity with institutions, the US dollar is having a hard time. In a report titled “The Fraying of the US Global Currency Reserve System,” popular generalist investor and Swan bitcoin, a BTC investment app, consultant Lyn Alden detailed Her bearish stance on the US dollar said:
“Over the next three to five years, I still expect many currencies, including the dollar, to continue to depreciate against hard assets and that the dollar is likely to be one of the weaker major currencies during that period.”
Alden took the opportunity to address Bitcoin as a reserve asset, referring to an “ardent group of proponents for the idea that Bitcoin’s network effect is too strong to stop and that it will continue to expand exponentially until it becomes global Financial system, ie hyperbitcoinization, eats up. “She paid tribute to the insatiability of the crypto community, adding that” there has been an increasing amount of money pouring into Wall Street over time. ” Alden admitted
“Even if it never reaches the proportions some Bitcoin proponents believe, it could still be used as part of a global monetary system.”
At the time of writing (17:01 UTC), BTC is trading at USD 19,372, up 2.6% in one day and 16% in one week. The price rose 158% within a year.
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