January 23, 2021


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2020 – The institutional investors get into Bitcoin

2020 - The institutional investors get into Bitcoin

Author: Luuk Soons

A major trend of the last months of 2020 is that it is becoming more and more famous and famous

Investors have started allocating to Bitcoin.

A pioneer in this area is Dan Morehead. He is the director of the investment company

Pantera Capital. In 2014 Dan Morehead decided with the management to fully focus the activities

for asset management for Bitcoin and other digital assets.

After Dan Morehead, wealth managers and investment firms started using Bitcoin

as a new asset class. In the years since then, the

necessary infrastructure and tools to make Bitcoin investable for institutional companies


For example, Coinbase has created a separate division, Coinbase Prime, to serve these investors. Fidelity, one of the largest wealth management companies in the world, down $ 7 trillion

Management, set up a separate department for the development of crypto services. Loyalty continues to function

to launch your own Bitcoin investment fund: Wise Origin Bitcoin Fund I. This

The mutual fund will compete with Grayscale’s. The Bitcoin mutual fund of

Grayscale already withdrew around 500,000 BTC from the market in 2020. It is most of it

popular fund for high net worth individuals and institutional investors.

The key factor in market sentiment is when big names and companies step in. It

really started to boom when legendary investor Paul Tudor Jones announced it was him

had changed his mind about Bitcoin. Paul Tudor Jones now compares the role of Bitcoin with that of gold

in the 1970s as the second highest inflation insurance. Then others came

famous investors including Bill Miller, George Ball and especially Stan Druckermiller.

Stan Druckermiller is one of the richest investors in the world and has most of the world

had a successful mutual fund. His fund had an average return of 30 for 30 years

% per year without ever causing a loss. Stan Druckermiller stated that Bitcoin will have more returns

will give way like gold as an inflation insurance and that especially the younger generations of Bitcoin above

will prefer gold.

Subsequently, asset manager Guggenheim Partners recently announced that it had acquired 500

Millions of dollars to invest in Bitcoin. BernsteinAlliance recently published a report

where there was advice to its investors to allot 1 to 10% in Bitcoin. In addition, the

Larry Fink, CEO of BlackRock, admits that Bitcoin is even becoming a global asset

The dollar’s position abroad could weaken.

Institutional investors have Bitcoin as a new asset class in 2020 and

includes inflation insurance. It will not take long

There is a bitcoin shortage on the exchanges.