Finally it appears that the predicted tipping point of traditional financial institutions investing in Bitcoin is behind us. The headlines have been both dramatic and accelerating along with the rapid rise in BTC price:
Accelerating institutional adoption of digital assets
- Sept 2020: Forbes – Private capital and institutions are piling into bitcoin and other digital assets.
- Aug 2020: Fidelity Launches its first bitcoin fund. Minimum Investment $100k.
- June 2020: Fidelity survey of 800 EU and US financial institutions. 80% say digital assets could be a worthwhile investment. 6 out of 10 believe digital assets have a place in their investment portfolio.
- Oct 2020: Grayscale Investments adds $1bn in crypto inflows in 3Q 2020. 81% from institutional investors.
- Nov 2020: Guggenheim Macro Fund($1bn+) files to invest up to 10% in Grayscale BTC Trust.
- Dec 2020: Forbes – Private capital and institutions are piling into bitcoin and other digital assets
- Dec 2020: Massachusetts Mutual Life Insurance Co. has purchased $100 million in Bitcoin for its general investment fund, the latest mainstream firm to dabble in digit assets.
MicroStrategy invests $425m of corporate treasury in Bitcoin
If you want to get up to speed fast, listen to Michael Saylor, the co-Founder and CEO of MicroStrategy explain why he truly believes that BTC is a store of value, especially into massive QE. A monetary network that can plug into any technology such as Square, Paypal, Amazon etc. BTC has now passed the test of time and won’t be hacked or banned. He believes $10-15bn of BTC will be sold on mobile phone apps.
BTC Investing- Safer than before.
We have come a long way in crypto currencies and safety and security have improved significantly. The emergence of insured and credible custody (Bitgo, Fidelity, Gemini) and safe trading (Copper, Tagomi, Fireblocks) is, without a doubt, a considerable catalyst in further interest in digital assets. Liquidity providers such as B2C2 take much exchange pain away for bigger players. For investors/speculators still not keen to set-up trading accounts many tracker funds (Coinshares, Grayscale) and actively managed crypto-asset funds are available ( Nickel, Soldium)
BTC Futures: Exponential growth expected
BTC futures and options are the natural evolution of any financial product. On 26th November derivatives exchanges set an all time record volume of $93.36bn. In the regulated space, reflecting institutional activity, the CME traded a record $17.1bn in November, averaging $962bn of open interest.