Public Companies Have Invested Billions in Bitcoin This Year
The list of large public corporations expanding their investments and portfolios to include Bitcoin is growing. According to recent research, Grayscale leads a group of over ten public companies that have invested in Bitcoin in 2020.
The total value of which is over $6 billion which, at today’s prices, equates to around 526,000 BTC.
Not only @Square, in 2020 there are more than 10 Public Companies investing in $ BTC, with a total value of over $ 6 billion, equivalent to nearly 600,000 BTC.$BTC #BTC pic.twitter.com/7zxX94Clwx
— Coin98 Analytics (@Coin98Analytics) October 13, 2020
Institutions Will Drive Bitcoin Investment
While the chart may not be totally accurate, it does suggest that more institutional investment funds are buying up Bitcoin as part of their portfolios. This should come as no surprise considering that governments and central banks have been debasing their own currencies in order to tackle growing mountains of debt.
Additionally, with banks offering zero or negative interest rates, investors are pivoting to safe have assets such as Bitcoin, which recently hit a hash rate high, or gold.
According to Grayscale’s most recent update, it actually has a total assets under management (AUM) figure of $6.3 billion, of which just under 82% is in the Bitcoin Trust.
10/13/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $6.3 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/qwqOFHAnpl
— Grayscale (@Grayscale) October 13, 2020
As reported by CryptoPotato, Fidelity also sees huge potential in Bitcoin, asserting that it could grow into a trillion-dollar market. Jason Yanowitz from BlockWorks Group commented that a portfolio example of 5% Bitcoin allocation for a company that has $3.3 trillion AUM could be massive for BTC if just a fraction of its clients heeded the advice.
Fidelity just recommended that investors allocate 5% to Bitcoin.
Fidelity has $3.3 trillion AUM.
Investing 5% into Bitcoin would be an additional $165 billion of capital flooding into Bitcoin.
You have to be crazy to not own Bitcoin at this point.
— Yano (@JasonYanowitz) October 14, 2020
It seems that some of these large institutional funds are starting to treat Bitcoin and crypto assets as an asset class rather than just the asset itself.
BTC to $1 Million
Former hedge fund manager Raoul Pal is also bullish on Bitcoin, claiming that it could reach $1 million in five years in a recent interview with Stansberry Research. He added;
“It’s going to be not because the world is collapsing … it’s because there’s gonna be adoption by the real large pools of capital.”
The investor continued to state that ‘the pipes aren’t there’ to allow large institutional investors to invest in Bitcoin yet, but that’s coming. ‘It’s on everybody’s radar screen and there are a lot of smart people working on it.’
The global economic meltdown narrative and concept of scarcity all add to the attraction of holding Bitcoin as the next bull cycle looks poised to commence.