Bitcoin Is Being Bought Up By Highly Profitable Institutions As CIOs Buy BTC Ahead Of Major Firms
- Major players in the traditional financial world are starting to invest in Bitcoin.
- Investment portfolios have started to improve their returns that include Bitcoin.
Bitcoin has earned a lot of attention from the traditional financial market, though the recent attention has been more positive. In a statement from Anthony Pompliano, it looks like the chief investment officers of the multi-billion institutions are gaining some inflow now.
Even though these transactions aren’t directly invested from funds, it is a major step for the cryptocurrency industry in the right direction.
NEW TREND: I’ve met with multiple CIOs at multi-billion dollar institutions lately.
The firms aren’t invested in Bitcoin yet, but the CIOs are.
That will quickly change 🔥
— Pomp 🌪 (@APompliano) July 24, 2019
Now, even though these investments are at the personal level for now, their pro-Bitcoin attitude could ultimately combine with infrastructure plays to ultimately spread down to the funds that they run. It shouldn’t take longer after that before the funds end up involving Bitcoin as well. As is evident in Pompliano’s statements, there are already fund managers that have started to move on to cryptocurrency.
NewsBTC recently reported on Bill Miller, a major investor and economist, who ended up betting on Bitcoin in a fund and discovered a 46% year-to-date performance. This type of performance in a matter of seven months is almost unheard of, especially considering that the S&P 500 only grew about 7% in the same amount of time.
imagine that – bitcoin driving alpha! https://t.co/6ZGtVPqXCw
— Meltem Demirors (@Melt_Dem) July 25, 2019
Still, it’s important to note that Miller isn’t just an inexperienced investor; he is the founder of Miller Value Partners who has said before that at least 1% of the net worth he holds has been in Bitcoin for the last five years. He also said that he believes that cryptocurrencies as a whole are viable, since it isn’t directly connected with stocks, bonds, or foreign currency.
Mark Mobius, who is a fund manager and emerging markets investor, was featured in Bloomberg with quotes that stated that he was keeping an eye on Bitcoin. The investor has stated before that he thinks that the use of digital assets could be a reality in the changing economy. Responding to a question of how cryptocurrency could help Venezuela, he mentioned the effect that this asset class could have on global money transfers.
A former executive with Facebook and current chief executive for Social Capital named Chamath Palihapitiya said on live television that Bitcoin is the economy’s “single best hedge” to defend against the traditional financial market. He also discussed the value of this decentralized tech against the central bank strategy of printing money.
Companies are starting to understand exactly how the cryptocurrency industry can help. Delphi Digital, for example, is a cryptocurrency research firm, and they found that a 3% increase on their tradition portfolio increased the Sharpe Ratio. Sharpe Ratio is a financial measure that is used for the assessment of risk-return profiles.
Binance Research also discovered a positive effect on integrating Bitcoin, saying that it created an “overall better risk-return profiles.” In a report, they expressed that Bitcoin is considered a volatile asset, seeing an 80% downturn regularly. However, Bitcoin also offers a wide array of “diversification properties” in both traditional and cryptocurrency financial profiles.