Grayscale CEO recently revealed the pension industry joining hedge funds and other institutional firms in gaining exposure to Bitcoin.
Pension funds have already begun investing in the world’s most popular crypto asset, Bitcoin, according to the biggest crypto hedge fund firm, popularly known as Grayscale.
What you should know
In a recent Bloomberg interview, Grayscale CEO, Sonnenshein, disclosed on the pension industry joining hedge funds and other institutional firms in gaining exposure to Bitcoin through his firm portfolio, better known as Grayscale Bitcoin Trust.
READ: World biggest crypto hedge fund: Grayscale Crypto holdings now $9.8 billion
We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions, and endowments.
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At press time, Grayscale net Assets Under Management, Holdings per Share, and Market Price per Share for its Investment Products totalled $24.5 billion. The sizes of allocations they are making are growing rapidly as well.
— Grayscale (@Grayscale) January 11, 2021
The chief Executive officer also gave details about the trust and how it could affect the overall Bitcoin market as regards pricing.
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Sonnenshein said:
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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Follow Olumide on Twitter @tokunboadesina or email [email protected] He is a Member of the Chartered Financial Analyst Society.
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The Crypto futures became overheated and record sell-offs began leading traders to lose more than $527 million in a single day.
These are surely bad times for many crypto investors on the account that roughly $530 million worth of Crypto positions disappeared into thin air within a day.
The mass liquidation of such trading positions, according to data retrieved from Bybt.com, showed such occurred before the flagship crypto dipped around $34,000 today.
What this means
Over the past day, Bitcoin, with the highest dominance rate in the crypto market gained 7% when it moved from $35,500 to nearly $38,000, taking into consideration future demand for the crypto asset could skyrocket.
What they are saying
A highly respected crypto expert, Ki-Young Ju, disclosed the ongoing activity in the ever-volatile Crypto market on his Twitter feed, by critically hinting that buying pressure has paused in recent days.
Strong on-chain buying signals that have driven this bull market hasn't come up so far. $BTC might retest 30k, so I don't have any position now in this uncertain market. pic.twitter.com/aSsA0M4k6r
— Ki Young Ju 주기영 (@ki_young_ju) January 17, 2021
At the time of drafting this report, Bitcoin’s volatility ensured that no firm market direction was in control, as Bitcoin fluctuated around $34,800.
Sequel to the sudden correction seen in the Bitcoin market lately, it had been in on a bullish run relatively.
Some days ago, leading the United Kingdom’s financial regulator, the Financial Conduct Authority, recently issued a piece of stern advice on crypto investments The statement highlighted the risks associated with investing in Bitcoin and other leading crypto assets and warned the public there were high chances all their funds could be lost;
“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns. Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money.”
Bitcoin traded at $36,262.41 with a daily trading volume of $56.4 billion, down 0.49% for the day.
Large crypto entities are definitely up to something with the prevailing bullish trend at the world’s flagship crypto. Before dropping to $36,100, an unknown Bitcoin whale moved about $128 million worth of cryptos.
Data retrieved from Whale alert, an advanced crypto tracker, revealed recently, that a large entity transferred 3,510 BTC valued at $128.3 million from an unknown wallet to an unknown wallet.
READ: Bitcoin’s market value can reach $600 billion – JP Morgan Chase
Tx: https://t.co/oTdElbEHYw
— Whale Alert (@whale_alert) January 16, 2021
READ: Bitcoin more valuable than any global bank
At the time of writing this report, Bitcoin traded at $36,262.41 with a daily trading volume of $56.4 billion. Bitcoin is down 0.49% for the day.
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The IMF says close to 80% of the world’s central banks are not allowed to issue a digital currency under their existing laws.
While many countries are already planning to or already developing fiat-crypto, the International Monetary Fund’s most recent report has indicated that only a few nations are permitted legally to carry such actions.
“Countries are moving fast toward creating digital currencies. Or, so we hear from various surveys showing an increasing number of central banks making substantial progress towards having an official digital currency.
“But, in fact, close to 80% of the world’s central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is not clear,” the IMF stated.
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In the recent post, seen by Nairametrics, the global financial body disclosed various reports suggested a large number of central banks are examining the possibility of having a central bank digital currency (CBDC).
“Still, a majority of such countries have legal structures that do not support the establishment of cryptocurrencies, or in some cases do not permit the development of them
“Any money issuance is a form of debt for the central bank, so it must have a solid basis to avoid legal, financial, and reputational risks for the institutions.
“Ultimately, it is about ensuring that significant and potentially contentious innovation is in line with a central bank’s mandate. Otherwise, the door is opened to potential political and legal challenges.”
READ: UBS warns Bitcoins could disappear like Myspace
What you should know: A digital currency is a cash balance recorded electronically on a store value card or other physical devices, which could someday replace the physical notes.
READ: Central banks digital currencies pose a threat against the U.S dollar
Recall some months ago, the International Monetary Fund (IMF) published a video illustrating what cryptocurrency is.
Besides suggesting that cryptocurrency could “completely change the way we sell, buy, save, invest, and pay our bills,” IMF went on by saying that it “could be the next step in the evolution of money.”
The IMF tweeted the video giving vital details on what cryptocurrency is. Referring to cryptocurrency as “a special currency,” the two-minute video attempts to outline its benefits in payments, such as by removing middlemen, lowering costs, and increasing transaction speed.
READ: U.S Banks permitted to use Crypto for payments
— IMF (@IMFNews) August 23, 2020