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Cryptocurrency

About 33% of pension funds, hedge funds now own digital assets such as Bitcoin

In the US 27% of financial institutions like family offices, investment advisers, pension funds, and hedge funds said they own crypto assets.

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SEC proposes rules regulating Blockchain and Crypto investments, About 33% of Pension Funds, hedge Funds now own digital assets such as Bitcoin

It seems the stake in crypto-assets by institutional investors, is rising by the day, as reports from Bloomberg News, in a survey, done by America’s leading money manager, Fidelity Investments shows a third of large institutional investors owning crypto assets such as Bitcoin.

In Europe and America, 36% of about 774 respondents said they own crypto assets or its derivatives.

In the U.S, 27% of financial institutions like family offices, investment advisers, pension funds, and hedge funds said they own crypto assets, up from 22% this year.

READ ALSO: Satoshi Nakamoto highly unlikely to spend his 1.1 million BTC

About 25% of the respondent held Bitcoin, while 11% hold Ethereum.

Why institutional investors are now so keen on cryptocurrencies? In a study carried out by Nairametrics using various crypto exchanges data feeds, results show many Pension Funds, Hedge Funds and Family Offices around the world, are increasingly going into crypto assets because of its low correlation to other financial assets, and low-cost transactional charges in executing large trades.

Meanwhile, Bitcoin has increased in value by 36% since the beginning of 2020, and while other traditional financial assets plunged during the Covid-19 pandemic.

READ MORE: Investment One records highest month on month growth on RSA Fund II

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“Europe is perhaps more supportive and accommodating,” Tom Jessop, president of Fidelity Digital Assets, said in an interview. “(It could) be just things going on in Europe right now, you got negative interest rates in many countries. Bitcoin may look more attractive because there are other assets that aren’t paying return.” 

These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class,” Jessop said.

READ MORE: FG concludes plan to borrow N2 trillion from Pension Fund  

Fidelity declined to comment on the number of customer assets or holdings by institutional groups. 

 

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Cryptocurrency

Altcoins giving investors weekly returns of at least 100%

4 cryptos are outperforming Bitcoin by a long distance, having registered weekly gains of more than 100% at press time.

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The world’s most popular crypto, Bitcoin is presently trading above the $55,000 price levels amid profit-taking seen across market spectrums that currently leaves the world’s flagship crypto with weekly gains of about just 3.71%.

Still, 4 cryptos are outperforming Bitcoin by a long distance, having registered weekly gains of at least more than 100% at the time of drafting this report.

The leader of the pack is Telcoin which rallied by 291% in the last 7 days. The fast-rising crypto is an Ethereum-based decentralized crypto created about 4 years ago in Singapore to be the bridge between blockchain, cryptos, and the telecom industry.

The crypto project was created solely to partner with leading American Telcom firms in curbing the obstacle that is prevalent between billing platforms and mobile money, by providing users with very fast, cheap remittances fees when compared to mobile money platforms.

The crypto asset is an ERC-20 token meaning it thrives on the Ethereum Blockchain.

Ethereum Classic comes in second with a weekly gain of 166%. The five-year-old crypto is a hard fork of Ethereum, solely designed as a smart contract network, with the capability of supporting decentralized applications. Its native token is ETC.

The crypto asset gained its relevance for preserving the integrity of the existing Ethereum blockchain after a major hacking event that led to millions of Ethers stolen.

OKB comes in third on the account that it rallied by 117% over the past week, OKB is a fast-rising altcoin that operates on the Ethereum blockchain. The crypto asset currently has a supply of 300,000,000 with 60,000,000 in circulation.

The utility crypto is issued by the OK Blockchain Foundation with the major objective of connecting prospective crypto projects to OKEx users as well as investors.

The fourth is Dogecoin with a weekly gain of 102% at press time. The popular crypto asset facilitates peer-to-peer digital transactions. This means you can send money online with much ease. It is usually referred to as “the internet currency.”

It is different from BTC’s proof-of-work protocol in many ways, one of which is the Scrypt technology. The fast-growing altcoin also has a block period of 1 minute, and the total supply is unlimited, meaning that there is no limit to the amount of Dogecoin that can be mined.

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Cryptocurrency

Unknown whale moves $440 million worth of Bitcoin as institutional buying drops

Data retrieved from Btc Blockbot revealed the wealthy entity moved 7,970 BTC worth $440 million in block 681,99.

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BTC, Bitcoin, crypto, Unknown entity transfers $166 million worth of Bitcoins

Wealthy investors have increased their transactional volume just as a Bitcoin whale moved about $440 million some hours ago. The world’s most popular crypto asset hovers around $54,500.

Data retrieved from Btc Blockbot revealed the wealthy entity moved 7,970 BTC worth $440 million in block 681,99.

READ: 1 Bitcoin will buy you a house in Nigeria’s rich suburb

In the past few weeks, the flagship crypto has relatively experienced a significant amount of selling pressure after touching $58, 0000 and plummeting as low as $47,000, suggesting that institutional inflow on the world’s most popular crypto asset seems to be faltering.

Adding credence to the weakening buying spree is data retrieved from Glassnode postulating that the Bitcoin number of Addresses holding 10+ Coins just reached a 4-year low of 147,046

The previous 4-year low of 147,094 was observed on 03 May 2021.

READ: Dogecoin breaks new high, far more valuable than Nigerian Stock Market

At the time of writing Bitcoin traded at $54,465.57 on the FTX exchange with a daily trading volume of about $70 billion. For the week, the flagship crypto asset is up by just 0.35% and it remains by far the most valuable crypto by market value with a valuation of $1.018 trillion.

Recent data reveal Bitcoins older than 6-months have not seen a meaningful increase in spending since the correction back in February, meaning long-term holders have paused their buying actions momentarily.

Previous instances of similar spending behaviour were observed during the December 2020 consolidation, just before breaking to a new all-time high, and during the first bull market correction in January.

What you must know

At the flagship crypto market, traders or investors who hold large amounts of bitcoins are typically referred to as whales.

This means that a BTC whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.

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Usually, as these whales accumulate the flagship crypto assets, Bitcoin’s circulating supply reduces, and this can weaken any bearish trend the crypto asset finds itself in.

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