Author: Dai Zhong
The price of Bitcoin broke through $20,000 on Wednesday, setting a record high. Institutional funds are aggressively entering the cryptocurrency field, and more and more Bitcoin giant whales are emerging.
After the bitcoin price broke through $20,000 on Wednesday and hit a record high, it immediately broke the round of $21,000. The price has almost tripled this year. There are more and more signs that under the quantitative easing policy environment, institutional funds are aggressively entering the field of cryptocurrency, boosting the Bitcoin bull market.
The asset management scale of Grayscale Bitcoin Trust Fund has more than doubled from US$5.9 billion at the end of the third quarter of this year to the current US$12.1 billion.
Bitcoin trading platform Coinbase stated that its institutional assets under custody have increased from $6 billion in April to $20 billion in mid-November.
More and more Bitcoin giant whales have surfaced , such as blockchain investment funds Pantera Capital, Polychain Capital and Galaxy.
One River Asset Management recently told the media that by the beginning of 2021, its holdings of Bitcoin and Ethereum will reach approximately US$1 billion. And behind this asset management company is the support of billionaire Alan Howard.
Brevan Howard Asset Management under Howard’s name acquired a 25% stake in One River in October. Another company under its name, Elwood Asset Management, is providing One River Digital with transaction services, market analysis and technical support.
MicroStrategy, a business intelligence company, bought $250 million worth of bitcoin in August and said it will use bitcoin as its main reserve asset to hedge against inflation. Subsequently, the company purchased $175 million worth of bitcoin in September and $50 million worth of bitcoin in December. The company also issued approximately $650 million in convertible bonds to raise cash to buy more bitcoins.
Many well-known investors have also begun to “blow” Bitcoin’s value and investment prospects.
Billionaire Paul Tudor Jones recently stated that he believes the current Bitcoin rally is only in the first game.
Rick Rieder, chief information officer of BlackRock’s fixed income division, believes that Bitcoin, as a store of value, may even replace gold because it has much more functions than gold bars.
Qiaoshui Dalio stated that he believes that Bitcoin and other cryptocurrencies have become “an asset substitute similar to gold.” He also believes that digital assets will serve as a diversification tool and have a place in investor portfolios.
Value investor Bill Miller believes that the current risk of holding Bitcoin is lower than ever before, and he predicts that over time, more and more institutions will participate.
Source: Wall Street
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Editor in charge: Tang Jing
