5% of Pension Funds Going Into Bitcoin 🤑 (Told You This Was Coming in 2018)
US Pension Funds Target Bitcoin
Pension and trust funds are increasingly looking at bitcoin
Pension fund market capitalization in 2019 was $ 32 trillion
Achievement of Bitcoin capitalization of $ 1 trillion can raise the price of an asset to the level of $ 50 thousand.
Investment firm Grayscale Investments announces growing interest in bitcoin from U.S. pension funds
The Bitcoin cryptocurrency is increasingly attracting pension funds in the United States. This was announced in an interview with Bloomberg by the new head of the investment firm Grayscale Investments, Michael Sonnenshine..
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Increased interest from institutional investors, including pension and trust funds, will continue to fuel bitcoin’s rapid growth to new highs, he said..
At the time of this writing, the Grayscale Investments bitcoin trust has accumulated more than 3% of the total bitcoin supply.
The firm is already noticing that not only hedge funds are entering the market, but other institutions, including pension funds, are already entering the market, Sonnenschein says..
“The capital coming from them is also growing rapidly,” Sonnenschein added..
Grayscale has ten funds on the account, the total capital of which is $ 25 billion.
For comparison, last year Grayscale only had $ 2 billion (+ 1100% growth). The bitcoin trust received most of the capital against the backdrop of a cryptocurrency rally, which raised the cryptocurrency to more than $ 41,000.
US pension funds are among the largest institutions in the financial market.
According to Statista, in 2019, the total capital of American pension funds was $ 32.2 trillion. The total market capitalization of the cryptocurrency market at the time of writing is $ 1.09 trillion. At the same time, Bitcoin alone accounts for $ 762 billion (~ 70% of market capitalization).
Sonnenshine believes that the growth of assets under the firm’s management is directly correlated with the development of bitcoin, as more people are interested in an asset as its price rises. Ryan Watkins, an analyst at Messari, wrote in June 2020 that an inflow of just 1% of institutional funds could raise the capitalization of bitcoin to $ 1 trillion..
Bloomberg analysts believe that with such a capitalization, the price of bitcoin will rise to $ 50 thousand.
The bitcoin rate in the BTC / USDT pair at the time of this writing is $ 41,460.
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