The Institutionalization of Bitcoin: How Wall Street Has Jumped Into BTC
Despite Bitcoin being around for a number of years, it was only in the last year that Wall Street woke up to Bitcoin.
It would be fair to say that the institutionalization of Bitcoin was always going to happen.
After all, the granddaddy of digital currencies is the best performing asset over the last decade, rising more than 300% just in 2020 alone.
Since 2011, Bitcoin’s cumulative gains have surpassed an incredible 20,000,000%, far outpacing the cumulative gains of the Nasdaq 100 and US Large Caps, which posted returns of 541% and 282%, respectively.
However, it was the years between 2018 - 2020 after the crash of December 2017, that actually made BTC more attractive to institutional investors. A long period of consolidation and stability with gradual increases is exactly what the big investors want. Sure, Bitcoin has its volatile moments, but so do most asset classes. What Bitcoin has proved is that it is here for the long term.
Now, as we approach the halfway point of 2021, Wall Street is now well and truly in the Bitcoin game. The institutional adoption of Bitcoin has rapidly expanded across sectors. It is easier to name the organizations not involved with bitcoin and crypto than those that are.
From companies incorporating cryptocurrencies into their treasury reserve strategy and buying Bitcoin for their own investment accounts, to corporate and investment banks collaborating with other fintech companies to offer the crypto version of traditional securities services to asset managers, pensions, and other clients.
Some Institutional Investors in Bitcoin
After US bank Citigroup announced in early May that they are considering the introduction of cryptocurrency services, they will join a long and growing list of institutional investors in Bitcoin. Here are some of the biggest institutional investors:
MicroStrategy, a leading business analytics platform holds 71,079 BTC. At one point, their CEO Michael Saylor said he was buying $1,000 worth of Bitcoin every second.
Tesla, the electric car manufacturer, headed by crypto king Elon Musk, joined the ranks of companies holding Bitcoin this year, spending $1.5 billion buying up Bitcoin.
Galaxy Digital Holdings, the Crypto-focused merchant bank founded by Mike Novogratz in 2018, holds 16,402 Bitcoin.
Grayscale Investments, the owner of the largest Bitcoin portfolio of any institutional investment platform, with over $30 billion worth of Bitcoin.
So, with institutional investors fully onboard the Bitcoin express, by buying Bitcoin at Cointandem, you can join them too.