The cryptovoltaic industry is attracting an increasing number of institutional players. This is reflected in new infrastructure investments and the increasing attention they are paying to bitcoin as an asset class. The most important events of recent weeks are in ForkLog’s review.
Multimillionaire Club invested in bitcoin on the eve of the US elections
Members of Tiger 21, a wealthy individuals club with at least $100 million in assets, invested in bitcoin, silver and gold mining shares as insurance against Joe Biden’s victory in the US presidential election.
„With near-zero rates in debt markets and uncertainty, many people are increasing their share of gold and bitcoin,“ said Avi Weintraub, president of real estate at Weintraub Companies and head of Tiger 21 in Miami.
According to Weintraub, investors who ignored Bitcoin eight months ago are now following with interest media publications comparing gold and the first crypt currency.
„We do not know where this topic is going. It may be justified, it may be madness or something in the middle. So why not add a small fraction of [bitcoin] to your portfolio? It’s kind of an insurance policy,“ he explained.
TIGER 21 (The Investment Group for Enhanced Results in the 21st Century) was launched in 1999 as a training network for wealthy investors. It has over 500 members, with total assets under management reaching $50 billion.
Fidelity Digital Assets began expanding into the Asian market.
Fidelity Investments, a digital asset manager, has announced a partnership with Stack Funds, a company based in Singapore.
The agreement covers the provision of custody services to Stack Funds‘ family offices and wealthy clients. The Singapore company undertakes to insure client assets and conduct monthly audits.
According to Michael Collette, co-founder of Stack Funds, the cooperation with Fidelity will increase the confidence of local investors in crypt currencies.
In June, Fidelity was informed that one in three out of 774 major clients surveyed in the US and Europe had already added digital assets to their investment portfolios.
British Mode Global Holdings will transfer up to 10% of its capital to Bitcoin.
Mode Global Holdings PLC, a London Stock Exchange-listed fittex group, was the first UK public company to announce the purchase of bitcoin. As part of its investment strategy, it has allocated around 10% of its capital for this purpose.
Mode Global Holdings‘ confidence in bitcoin increased amid the Coronavirus crisis and the lowest interest rates in the Bank of England’s 326-year history.
„This decision is part of a long-term strategy to protect investors‘ assets from currency devaluation,“ the company said.
Genesis Global Capital issued $5.2 billion worth of loans in the third quarter of the year.
The Institutional Investor Focused Service of Genesis Global Capital reported on its activities for the third quarter of 2020. Between July and September, the company issued $5.2 billion worth of cryptographic loans.
The overall increase in the company’s active loans was modest. In the third quarter the figure was $2.1 billion compared to $1.4 billion in the second quarter.
Genesis Global Capital’s loan portfolio for the period was dominated by altocoins and the US dollar. Bitcoin Freedom as a share of outstanding loans fell to 40.8%.
The main reason for the change in customer preference is the growth of the DeFi sector – against this backdrop, Ethereum and stelecoin loans are becoming more common.
Franklin Templeton invested in the custodian of the crypt currency Curv
The investment companies Franklin Templeton and Illuminate Financial have led an additional round of funding for the Curv Series A storage infrastructure provider. The amount of the investment is not disclosed.
Franklin Templeton manages $1.4 trillion worth of assets. In November 2019, the company announced the use of Curv technology to secure assets in the money market fund at Stellar Block Cell.
Curv is expected to take over the private key management function, which provides „instant availability and full autonomy over digital assets“. This allows transactions to be signed in a secure distributed way to protect against data leaks and insider collusion.
Curv’s CEO, Itai Malinger, previously stated that the company’s customer base covers both cryptovoltaic market participants and traditional financial institutions around the world. According to him, the greatest growth in demand is observed in Germany as well as throughout Europe.
In July Curv attracted $23 million from Commerzbank Group, Coinbase Ventures and Digital Currency Group.
Crypt-currency companies attracted $900 million of venture capital investments in the third quarter of 2020.
212 cryptocurrency and block-start-ups received about $897.7 million in venture capital in the third quarter of 2020, according to a study by The Block Research.
The most common types of transactions during this period were early and seed transactions. They accounted for half of the total volume in the quarter: 59 early stage deals and 60 seed deals.
The average deal size for early stage start-ups was $7 million, or about 30% of total investment in the quarter.
Seeding deals averaged $2.1 million and totaled $126 million, equivalent to 12% of total investment during the quarter.
61% of European institutions have already invested in cryptov currencies or are planning to do so.
European institutional investors are interested in digital currencies – many of them have already invested or are about to invest some assets in crypt currencies. This is what Cointelegraph says in its study.
In the study, analysts interviewed 55 institutional investors, including banks, asset managers and pension funds from Germany, Austria, Switzerland and Liechtenstein. The total amount of assets managed by the respondents is over 719 billion euros.
Of the 64% of respondents who have not yet invested in crypt currencies, 39% plan to do so.
„As a result, 61.15% of the professional investors surveyed either already own digital assets or plan to buy them in the future,“ the researchers said.
36% of those surveyed have already invested in cryptographic assets. Most of them hold less than 10% of the assets under management in cryptov currencies.
The most popular currencies among institutional investors remain Bitcoin and Ethereum. Steelcoins were purchased by 19% of respondents.