Large mutual funds can be the next big investors in the Bitcoin market. Recently it has been reported that owned by the government investment funds have become interested in buying Bitcoins (BTC). According to Robert Gutmann, CEO of New York Digital Investment Group, the company has had conversations with large mutual funds regarding the possibility of investing in Bitcoin. Robert Gutmann talked about this in a virtual podcast with investment analyst and Real Vision founder Raoul Pal.
Raoul Pal confirmed Robert’s revelation, stating that Singapore’s large investment fund, Temasek, is in fact an investor in Bitcoin. He explained that Temasek, which manages around $ 306 trillion in assets, has bought Bitcoin from miners.
Now that listed companies such as Tesla and MicroStrategy have BTC in their bills, there has also been speculation as to whether governments and governments will do the same. Robert Gutmann drew parallels between Bitcoin’s appeals against public companies and government investment funds, as it concerns institutional investors’ desire to secure their debts in dollars.
In August 2021, just as MicroStrategy announced its first purchase of Bitcoin, Michael Saylor talked about the value of bitcoin in the long run, as opposed to the devalued value of cash over the years. In March, Russ Koesterich, portfolio manager for the BlackRocks Global Allocation Fund, revealed that the status of gold was an inflation that was exaggerated. Bitcoin is a currency that can go very high in value, but it can also be significantly reduced. Despite declines, BTC is still very high compared to the previous year. Not everyone today knows how Bitcoin works and therefore there are smart trading systems that can help one on the run. Read more about these systems in this Bitcoin ERA review.
The US government is already one of the largest investors in Bitcoin, something that has made headlines in recent years because the government also has a special relationship with the cryptocurrency. Bitcoin is usually sold through public auctions through the US Marshals Service, a law enforcement agency in the US Department of State. More than $ 1 billion in Bitcoin has already been spent on US law enforcement. This has resulted in the US Marshals Service becoming a major player in Bitcoins.
However, it is not as well known about how the government actually handles bitcoins. According to a report from Fortune, we can now read about what the technology looks like regarding the handling of the cryptocurrency. The government’s plans have gone to the forest thanks to Bitcoin volatility. Many US authorities confiscate precious metals and objects, and then resell them at auctions. But none of these assets have a similar price volatility as Bitcoin. This has therefore created new issues and situations for the US government. A strategic time-limited sale would appreciate a significant price, which is then paid out according to the authority’s budget, but they have been criticized for selling bitcoins for a cheaper price.
More and more agencies have seized Bitcoins over the years, making the situation even more complicated. As it is not possible to track Bitcoin, consequences have been created for the system, as it is more difficult to establish ownership of the cryptocurrency, which is based on the principle of transparency. The intention was that Bitcoin should not be treated by intermediaries and authorities, but what about now that the authorities also start investing in the cryptocurrency? It only remains to be seen…