Bitcoin, institutional investors trend summary

Coinpost summarized the trend of institutional investors on the 4th.

In 2020, there were cases of participation by large companies, such as U.S.-listed companies such as MicroStrategy and Square purchase and hold large amounts of bitcoin (BTC) as a financial asset.

After 2021, the advancement of institutional investors who manage large amounts of money such as investment banks and asset management companies has been reported one after another.

Institutional investors who were skeptical of cryptocurrencies such as bitcoin are also providing related services according to demand as more and more customers are paying attention to the surge in bitcoin due to environmental changes and customer demand expansion due to the financial easing of coronavirus.

Goldman Sachs, Morgan Stanley, and New York Melon Bank are examples. In addition, large financial companies such as PayPal and Visa are actively engaged in cryptocurrency business.

[Institutional Investors List]

20/11/13 PayPal: PayPal, a non-payment conglomerate, officially launched the purchase, holding, and sales service of 4 stocks of Bitcoin, Ethereum, Litecoin, and Bitcoin Cash in the United States.

20/12/17 Principle Ver Asset Management: US investment company One River Asset Management established One River Digital ($1 billion), an investment manager specializing in cryptocurrency investment. It provides services related to Bitcoin (BTC) and Ethereum (ETH).

21/1/16 Deutsche Bank: Cryptocurrency custody and broker business plans emerge.

21/2/11 New York Melon Bank: New York Melon Bank, the world’s largest trust bank, plans to launch Bitcoin (BTC) and other cryptocurrency custodial services within this year.

21/2/12 PayPal: PayPal announced plans to expand its cryptocurrency trading service to the UK in a few months.

21/2/13 Goldman Sachs: Goldman Sachs, a large investment bank, considers offering a custodial of digital assets including cryptocurrencies.

21/2/15 e-Warrant Securities: e-Warrent Securities is a new category of covered warrants (e-warrants) for individual investors from February 15th. Started handling of ship trackers

21/3/2 Goldman Sachs: Goldman Sachs considers the resumption of the trading desk for cryptocurrency Bitcoin (BTC) futures.

21/3/10 JP Morgan: JP Morgan considers providing a structure for clients to invest in cryptocurrency-related stocks.

21/3/16 JP Morgan: JP Morgan Chase suggests the provision of a clearing agency for cryptocurrency business.

21/3/18 Morgan Stanley: A large financial institution, Morgan Stanley, plans to provide wealth management firms (institutional investors clients) with new access to Bitcoin-related funds.

21/3/29 Visa: Payment conglomerate Visa announced a policy to start using direct payment of stablecoin (USDC) based on the Ethereum (ETH) blockchain.

21/3/30 PayPal: PayPal launches cryptocurrency online payments for US users.

21/3/30 CME: US derivatives exchange CME (Chicago Merchandise Exchange) will offer micro bitcoin futures from May 3rd. You can trade in increments of 1/10 BTC per contract.

21/3/31 Bakkt: US cryptocurrency platform Bakkt launches a consumer app for Bitcoin (BTC) and digital assets.

21/3/31 Goldman Sachs: Considering Goldman Sachs’ offering of cryptocurrency investment products, including Bitcoin, to asset management companies (subsidiary clients) for the wealthy in the second quarter of this year.

21/3/31 Morgan Stanley: Morgan Stanley announces the initiation of filings with the SEC on related investments in Bitcoin (Date 31).

21/4/1 Black Rock: #1 asset management Black Rock was found to have traded bitcoin futures through the fund.

[Bitcoin ETF information]

Large investment companies such as Fidelity, NYDIG, Skybridge, Wisdom Tree, Van Eck and Baekt are conducting applications for Bitcoin ETF.

[Relationship between institutional investors and Bitcoin]

Dan Held, head of the Kraken business of the US cryptocurrency exchange, discusses the participation of Bitcoin and institutional investors in detail.

According to him,’institutional investor’ refers to a financial institution or a banking institution that is a company that provides services as an intermediary in the financial market. This includes central banks, funds rich in funds, various banks such as investment banks and commercial banks, securities companies, and insurance companies. And in the cryptocurrency industry, “institutional investors” refer to hedge funds and companies in addition to them.

It is explained that it is the result of finding a safe way to store value as the market was confused by the spread of the coronavirus against the background of institutional investors starting to purchase bitcoin. Since 2020, there has been a change in attitude toward bitcoin so far, and there are three institutional investors who started to buy it.

1.Hedge Fund
2. Investment bank
3. Enterprise

Without the participation of these institutional investors, Held pointed out, “Bitcoin will become a niche asset held only by individual investors, and it will not affect the world’s finance or politics.” As it is widely recognized as a means of preserving values, it is said that it is becoming more rooted in our lives.

In addition, the chart of the ratio of institutional investors and individual investors in Coinbase’s securities registration declaration form is cited. Emphasizing that the rise of institutional investors began in the second quarter of 19, and the rapid increase in the fourth quarter of 20, he argues as follows.

“Bitcoin has never had such strong fundamentals for an existing financial system. Therefore, Bitcoin is necessary and a lot of money is being invested. This could lead to a stronger bullish or milder bear market than the previous market.”

With the participation of institutional investors, Bitcoin has had an influence on the global economy, suggesting that this trend will accelerate in the future. Finally, “Bitcoin is now recognized globally as a storage asset of new value. It is the golden tower of hiring by institutional investors.”

(Beginning in 2021, I’m going to use it.)

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FINTECHPOST

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.