Bitcoin (BTC) Shoots $42,000 As $45 Billion Asset Manager GoldenTree Starts Buying

By Bhushan Akolkar
Published July 31, 2021 Updated July 31, 2021
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Bitcoin (BTC) Shoots $42,000 As $45 Billion Asset Manager GoldenTree Starts Buying

By Bhushan Akolkar
Published July 31, 2021 Updated July 31, 2021

Institutional inflows in Bitcoin (BTC) continue to grow at a faster rate. Just two days after banking giant State Street announced its crypto services, another $40+ billion asset manager GoldenTree has announced its investment in the world’s largest cryptocurrency.

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As a result, the Bitcoin (BTC) price is up 5% today shooting all the way to $42,000. At press time, Bitcoin is trading at a price of $41,932 with a market cap of $787 billion. This also comes amid strong Bitcoin outflows and rising network activity on the Bitcoin blockchain.

Steven Tananbaum, the chief investment officer at GoldenTree said that this is certainly a big move for the credit-focused company. As first reported by The Street, 

The New York-based firm has been adding Bitcoin to its balance sheet as a diversifier for the broad mix of debt-focused strategies it has run for years, according to two sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business dealings.

With big players continuing with their accumulation, the Bitcoin community has kept its hopes alive amid the recent BTC price volatility and consolidation.

The Rising Institutional Interest for Bitcoin

The regulatory environment is maturing and thus institutions are hopeful that Bitcoin is here to stay. Moreover, looking at the current global macros, inflation is taking a tall in the post-Covid pandemic recovery.

Thus, institutional players are looking for asset classes that can deliver returns beating inflation. Looking at the way Bitcoin and other cryptocurrencies have performed, this remains a smart fit. Bitcoin (BTC) has managed to deliver over 200% compounded returns over the last decade.

However, the percentage of institutional exposure into the crypto asset class is let for now. Like institutions just put 1-5% of their extra cash into Bitcoin or other digital assets.

Business intelligence firm MicroStrategy has been massive accumulating BTC over the last year and holds more than 100K Bitcoins on its balance sheet. During its Q2 2021 results announcement, it noted that its will continue with the Bitcoin strategy.

Furthermore, Germany has introduced a law that allows institutional players to invest up to 20% of their assets in digital currencies. This law is coming into effect starting August 2 next week. Thus, we can expect more such announcements in the coming week.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
715 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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