In 2020, people saw big news when a giant investment firm MicroStrategy decided to invest more than $400 million in Bitcoin. It was great news because it was the biggest investment in the leading digital currency, but after that many other money management companies entered into the digital space. Two asset managers even surpassed MicroStrategy in buying the top digital currency.
One River’s $600M BTC Purchase
In the latest interview, Eric Peters, CEO of One River Asset Management revealed info about the purchase that company made last month. One River bought Bitcoin worth $600 million in November when the price value was struggling below $16,000. This investment on the part of One River was greater than MicroStrategy’s BTC purchase.
The chief executive is very relaxed after diving into the digital sector and also claims to buy even more digital currencies. He said the exposure to the top two digital currencies, Bitcoin and Ethereum, would increase to $1 billion by 2021. “There is going to be a generational allocation to this new asset class. The flows have only just begun,” he said.
Ruffer’s Allocation
Another asset management firm known as Ruffer revealed its bet over the flagship cryptocurrency. According to Ruffer, it has dedicated 2.5% of its portfolio to Bitcoin, which accounts for more than $700 million in worth.
Famous investment company Guggenheim also has a plan to place 10% of its funds in Bitcoin Trust, the product of Grayscale. For this investment, the firm has filed an application with the Securities and Exchange Commission. Scott Minerd, CIO of Guggenheim, stated:
“Our fundamental work shows that Bitcoin should be worth about $400,000. It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. ”
The Coronavirus pandemic has created a situation that will increase the devaluation of fiat currencies. The expected inflation has caused institutional players to inject their money into hedge assets that have high potential and limited supply. Bitcoin has a limited supply, and the security of the network is a further edge to motivate people to join the race of the new era. Blockstack founder Muneeb Ali claims it is also possible that “currencies could start collapsing into Bitcoin.”
The rising price is another reason that warns investors to take their seat before it is too late to join. At press time, Bitcoin is exchanging hands at $22,857 after an increase of 10.24% over the last 24-hours.