Institutional Funds Buy Bitcoin Despite Extreme Bear Market Fear – BeInCrypto

Despite retail reluctance, major institutional investors such as the New York Digital Currency Group (NYDIG) continue to bet on Bitcoin.

NYDIG, one of the companies responsible for financing the miners crypto during the 2021 bull run, it recently raised $720 million from 59 investors for a product called Institutional Bitcoin Fund.

The company revealed information to the Securities and Exchange Commission in a filing on September 29, 2022. The company said its Bitcoin balance reached an all-time high in the third quarter of 2022.

On October 3, 2022, the company announced the hiring of two new executives, Tejas Shah and Nate Conrad, both from Wall Street banking giant Goldman Sachs. Both were hired to drive the mining and payment lines of business, reported Bloomberg.

“When markets crash, character emerges. A flight to quality from more risk-conscious institutional investors has relentlessly driven Bitcoin and NYDIG inflows over the past 12 months.” declared Ross Stevens in a statement.

NYDIG fundraiser arrives with market in ‘extreme fear’

While testing is being done for retail investors, the current bear market has shown be a right time for institutional players to dabble in crypto.

the annual report 2022 Global Hedge Fund from Big Four accounting firm PwC found that more than a third of hedge funds have invested $4.1 billion in crypto, 8% more than in 202.

The giants of asset management Abrdn, BlackRock and Charles Schwab they have also dipped their toes. in the group, driven in part by clients demanding exposure to the asset class. BlackRock announced a private Bitcoin trust for its institutional clients.

“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets,” said BlackRock executive Joseph Chalom in August 2022.

business intelligence company MicroStrategywhile not new to the club of corporate bitcoin holders, recently collected 301 BTC to bring its total stash to nearly $4 billion.

institutional investors, they seem to have come to terms with the volatility inherent in cryptocurrencies and have invested in them as a long-term bet.

An example of this is that the collection of NYDIG funds and Microstrategy purchases come at a time when the fear and greed index of cryptocurrencies is firmly planted in the “extreme fear” zone, which describes much of the sentiment in the retail market.

Shopify CEO is bullish on Coinbase stock

The declining crypto market has also proven to be a suitable time for wealthy individuals to invest in the space. The board member of Coinbase and Shopify CEO Tobias Lütkehas spent $369,000 weekly on Coinbase stock since early August 2022, as Coinbase stock price struggles amid the current bear market.

Institutional Funds Buy Bitcoin Despite Extreme Bear Market Fear

The price of Coinbase stock, which is down more than 75% since the beginning of the year, it often follows the price of Bitcoin.

Coinbase Stocks briefly bounced back after their partnership was announced with BlackRock in early August 2022. The partnership will offer BlackRock institutional clients access to cryptocurrencies.

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Institutional Funds Buy Bitcoin Despite Extreme Bear Market Fear – BeInCrypto


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