The era of institutional investors

Institutional investors and hedge funds have seemingly found their way into bitcoin and are now betting big on the digital asset.

Institutional investors bitcoin

People in the crypto-sphere have for a long time been saying that institutional money from large funds and investors is bound to find its way into crypto, and finally, they seem to be proven right. 

Let’s take a look at the different funds and investors in recent times that have decided to add bitcoin to their portfolio, in one way or another, either as a hedging tool or investment. 

Attached below is a good timeline overview of the gradual influx of institutional investors that have committed themselves to digital assets:

One of the companies we have previously mentioned on the blog, MicroStrategy, has raised approximately $650 million, which they intend to use to buy bitcoin. 

Michael Saylor bitcoin

“Bitcoin is the world’s best treasury reserve asset & the emerging dominant monetary network. It is the solution to the store of value problem faced by every individual, corporation, & government on earth..”

Michael Saylor, CEO of MicroStrategy

Legendary trader and investment icon Steve Druckenmiller said in 2018 that he was not interested in bitcoin. Being less optimistic on the US dollar, Druckenmiller has come out in recommendation of bitcoin, he believes it would serve as a better tool for investment compared to gold.

Steve Druckenmiller bitcoin

I’m a bit of a dinosaur, but I have warmed up to the fact that bitcoin could be an asset class that has a lot of attraction as a store of value.

Steve Druckenmiller, legendary hedge-fund manager now CEO of Duquesne Family Office LLC

I’m a bit of a dinosaur, but I have warmed up to the fact that bitcoin could be an asset class that has a lot of attraction as a store of value.

Similarly, another legendary investor Paul Tudor Jones will be allocating a part of his portfolio to bitcoin. Tudor Jones has stated that he believes investing in bitcoin is like investing in a very early tech company, he sees strong growth in the coming 20 years for the digital asset. 

paul tudor jones bitcoin

“The best profit-maximising strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”

Paul Tudor Jones, CEO of Tudor Investment Corp

The 169-year-old Massachusetts Mutual Life Insurance Co (MassMutual) has purchased $100 million worth of bitcoin. They state that this is the fund’s first step into investing in digital assets and foresee a deeper dive into these markets in the coming years. 

A UK based investment firm called Ruffer Investment has made a considerable bitcoin investment of $744 million. The main reason for the acquisition is that they desired a hedge to protect their current portfolio.

The BlackRock company, which is the world’s largest asset manager, has communicated through their CIO (Chief Investment Officer) that bitcoin could replace gold for investment purposes in the future. The CIO believes the asset is here to stay thanks to the younger generation’s great demand and interest.  

The transaction giant PayPal has recently started to offer users the ability to conduct crypto purchases and sales from their platform, which will soon be available globally.

The Chief Executive Officer (CEO) of One River Asset Management has started his new company to capitalize on the growing interest in digital assets. The CEO states the company will bring its investment in digital assets, consisting of bitcoin and ethereum, to about $1 billion as of early 2021. 

The truth is, there are too many prominent hedge funds and investors that are starting to invest in bitcoin that compiling a complete list would be far too tiresome. The interest in bitcoin has been overwhelming from large financial actors, creating a domino effect as it gets on the radar of more and more investors and funds that don’t want to get left behind in case bitcoin is the best play against a weak dollar, inflation and an asset for future growth. 

At this moment, bitcoin has reached a new all-time high, and I am excited to see where the future of the digital asset can go as it becomes more and more embraced. Like always, the ride will always have its bumps, but the long-term future looks surprisingly optimistic right now.