Bitcoin Jumps on Rising Capital Inflow from Institutional Investors
Several asset management companies are now favouring Bitcoin to traditional assets, according to numerous reports from exchanges and people familiar with large hard to track transactions in the unregulated digital asset.
Christopher Wood, global head of equity strategy at Jefferies, said he is trimming down gold exposure by 5 percent in favour of Bitcoin for the first time in several years.
In a weekly note, Greed and Fear, to investors, Wood Said “The 50 per cent weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin. If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.”
Similarly, Ruffer Investment has purchased bitcoin worth over $745 million through River Digital, the company that helped with the purchases via Coinbase in November.
In a recent update, Ruffer hints at the involvement of “world’s largest custodian of digital assets” without naming names. “Access to the bitcoin is controlled by multi-layer security protocols,” it stated. However, a second source claimed the custodian described in Ruffer’s portfolio update was Coinbase. Coinbase Custody presently stores over $20 billion in customer assets.
“On a fundamental level, Bitcoin’s growth is largely attributed to how it is designed and in May 2020, we witnessed third halving, a supply shock event, where the number of daily mined Bitcoin gets cut in half. In the previous two halvings, Bitcoin and overall crypto market cap has risen exponentially, and we are witnessing a start of similar bull trend,” explains Sumit Gupta, co-founder and chief executive officer at CoinDCX.
The revelation explained how large investors are taking advantage of bitcoin through trusted partners. Big bets in recent weeks by everyone from MassMutual to Guggenheim are seen as the driving force behind bitcoin’s current price rally.
Bitcoin price rose above $24,000 per coin on Saturday before pulling back to $22,770 per coin on Monday during London trading session.