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PIMCO, a $2.2 Trillion Fund Manager, Intends to Acquire More Cryptocurrency


cryptoknowmics.com 21 October 2021 07:30, UTC
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PIMCO, a fixed-income fund manager, intends to acquire more cryptocurrencies such as Bitcoin (BTC) after dabbling with the asset class through crypto-linked instruments, providing the latest indication that large institutions are beginning to embrace the new asset class.

PIMCO Plans to Acquire More Cryptocurrency Via Many Hedge Fund Portfolios

Chief investment officer Daniel Ivascyn acknowledged to CNBC on Wednesday that PIMCO already has exposure to "crypto-linked securities" through several hedge fund portfolios. 

According to him, the business intends to progressively grow its exposure to the asset class as part of its "trend-following or quant-oriented strategy."

He went on explaining:

“This will be a gradual process where we spent a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing.”

PIMCO was established in 1971. It is one of the world’s largest asset managers that specializes in active fixed-income securities. 

As of December 31, 2020, the business has $2.2 trillion in assets under control.

Bitcoin surpassed an all-time high above $67,000 on Wednesday, and Ether (ETH) surpassed $4,100 for the first time since May. 

The entire cryptocurrency market capitalization surpassed $2.63 trillion.

62% of Institutions Want to Begin Investing in Crypto Over the Next Year

For much of 2021, institutions have been pouring money into cryptocurrency investments, reflecting the rising public acceptance of digital assets. The move by PIMCO to acquire more cryptocurrency will have an impact on the crypto prices.

According to a September study conducted by a European investment firm, Nickel Digital Asset Management, over two-thirds, or 62% of institutional investors worldwide with no exposure to cryptocurrency are expected to make their first investments within the next 12 months. 

Meanwhile, according to Chainalysis statistics, institutional money was a significant driving force behind Asia's 706 percent increase in crypto transactions over the last year.

“There is no doubt that the crypto assets market is becoming more mainstream in the institutional and wealth management sectors,” Henry Howell, Nickel's head of business development, stated.

According to Howell, the growing institutional adoption is driven by several factors including solid market performance during the COVID-19 crisis and growing corporate involvement as well as the industry’s improving infrastructure and regulatory framework.


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