The major Victory Capital is making plans to give its investor pool the opportunity to enter the crypto market. Nowadays it is almost nothing special when an investment fund announces to get into bitcoin, but with Victory Capital we are talking about a fund of 140 billion euros.
If Victory Capital moved 1 percent of the assets under management into bitcoin, the fund would already exceed Tesla’s initial investment. Not a little boy and that can be good for the bitcoin price.
Victory Capital wants to offer different products
In the announcement on Wednesday, Victory Capital announced that it plans to offer multiple products that track Nasdaq-listed funds. Victory customers therefore do not invest directly in the products of the Nasdaq, but through an investment vehicle set up by Victory Capital itself. That is what they call a private fund in technical jargon.
The idea is that the funds track, among others, the Nasdaq Crypto Index, an index developed by the Nasdaq and Brazilian crypto asset manager Hashdex. The company will further launch two private funds that track the Nasdaq Bitcoin Reference Price Index and the Nasdaq Ethereum Price Index. The focus of the private funds will therefore be on bitcoin and ehtereum, with the majority flowing towards bitcoin.
Mannik Dhillon, the president of VictoryShares, said he sees cryptocurrencies as an asset class that is part of a well-diversified portfolio. It is interesting to see that more and more people from the traditional financial world are coming to the conclusion that at least bitcoin should be considered for every portfolio. Even if only to build in a hedge against the crumbling of the fiat money system and its possible consequences for the rest of the financial market.
Victory Capital a big boy
It is not surprising that the entry of Victory Capital is accompanied by a lot of fanfare. After all, the fund has approximately 140 billion in assets under management. Put that, for example, next to the “big” Grayscale, which currently has about 25 billion euros in assets under management and you understand that this is no small boy. If Victory Capital seriously buys in, it certainly has the potential to set the market in motion at the moment.
Although with the developments in El Salvador, Paraguay, Brazil, Panama, Ecuador and Argentina there are also things going on that are a lot bigger than Victory Capital. If bitcoin is rebranded as legal tender in more countries in the coming months, 2021 could well be a very good year for bitcoin.
Although we must not forget that we have been spoiled quite a bit in terms of the price in recent months. If you look at where we were one year ago or go even further back in time, it’s unbelievable how fast everything moves. Who would have predicted a few months ago that 2021 would be the year in which a country bitcoin default would adopt.
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