Data from US financial institutions for the second quarter shows that the big players of Wall Street have significantly increased their investments in cryptocurrencies. Among them, Goldman Sachs and Morgan Stanley reported that they have bought Bitcoin spot ETF worth more than 600 million US dollars, which is significantly higher than the amount of investments in the previous quarter, according to Polina Brotje, expert on the world’s largest cryptocurrencies in Latvia. and Estonia.
This increase in investment volumes indicates a general international trend of traditional financial institutions, asset managers of wealthy families, as well as other companies changing their attitudes towards digital assets as a valid part of their investment portfolio.
According to the BNY Mellon Family Office Investment Survey 2024, cryptocurrencies now make up 5% of family office investment portfolios. Among them, 33% of family office professionals say they are actively investing in cryptocurrencies and are ready to increase their holdings, while 30% say they have some exposure or are still investigating these funds.
Not only institutions and professionals in the financial sector, but also companies in the non-financial sector are more interested in investing in cryptocurrencies, which consider cryptocurrencies not only as a new type of investment , but also as a strategic reserve that can improve financial conditions. companies and ensuring liquidity in times of economic instability. The most internationally recognized Bitcoin custodians are MicroStrategy and Block (formerly Square).
MicroStrategy began building its Bitcoin reserves already in 2020, making the first purchase of 250 million US dollars. Currently, MicroStrategy already owns 226,331 BTC, which has a total value of about 14 billion USD. These investments have become an important part of the company’s financial strategy.
Block also made its first Bitcoin investment of $50 million in 2020 under the leadership of CEO Jack Dorsey. At the time, these investments represented about 1% of the company’s total assets at the time. Currently, the amount of Bitcoin investments made by Block reaches about 518 million US dollars.
The growing interest of corporations in Bitcoin and other digital assets is due to several different reasons. Some companies see cryptocurrencies as a hedge against the depreciation of fiat currencies issued by countries, while others are attracted by the potential for long-term capital growth. For example, the examples of Block and MicroStrategy have already shown that investing free money in Bitcoin is significantly better than the return on cash reserves, especially when accounting for inflation.
The rise of cryptocurrencies in investment portfolios is no longer a particularly narrow trend, limited to tech enthusiasts and private investors. Digital assets are now safely purchased by even the most conservative and cautious financial institutions, and are increasingly seen as an integral part of well-diversified investment portfolios.
In the investor community, the attitude towards cryptocurrencies has changed significantly in recent years – digital assets have become one of the hottest trends on Wall Street from “bar kids”. This is largely due to improvements in the regulatory framework for cryptocurrencies, as well as the launch of Bitcoin and Ethereum spot ETF trading on US exchanges.
The potential benefits of digital assets in investment portfolios are being recognized more and more. For example, historical data analyzed by CCData research shows that cryptocurrency assets can provide risk-adjusted returns while exhibiting low correlation with publicly traded stocks. . Therefore, Bitcoin and Ethereum can be considered as good diversification tools that offer relatively attractive alternatives to traditional investments. In practice, this means that including cryptocurrencies in a diversified portfolio could both increase overall returns while reducing risks associated with market volatility. Therefore, when comparing the portfolio with digital assets and the portfolio without digital assets, where both show an annual return of 17.5%, the portfolio with assets showed digital lower annual volatility of 6.25% compared to the portfolio without digital assets, which had value. changed so far +7.46% compared to yesterday.
As the use of digital assets continues to increase, a wider range of players are entering the digital currency market. Among them, the idea of including cryptocurrencies in a national investment fund, as well as creating part of national strategic reserves in cryptocurrencies, is becoming increasingly popular.
For example, the world’s largest Norwegian sovereign wealth fund has significantly increased its indirect Bitcoin investments this year. By mid-2024, the fund held approximately 2,446 BTC, an increase of more than 60% in six months. This was mainly due to increased holdings in crypto-related companies such as MicroStrategy and Block.
The interest in investment funds of different countries in investing in cryptocurrencies is growing. Funds in other countries, such as Singapore and the United Arab Emirates, have also explored investment opportunities in the cryptocurrency sector, recognizing digital assets as a potential hedge against inflation and an opportunity for portfolio diversification .
The growing institutional and corporate interest in cryptocurrencies is indicative of a wider international trend: digital assets are becoming an integral part of today’s investment portfolios. The financial industry continues to grow, and the role of cryptocurrencies is only likely to grow, offering new opportunities for diversification, growth and risk management.
2024-09-26 15:15:00
#Latvia #join #Nordic #countries #search #Bitcoin #VIDEO
