Corporate Bitcoin Holdings Are Thriving At An Alarming Rate

MicroStrategy and Tesla may have hit headlines more than any other firm in the recent past as far as Bitcoin and crypto news is concerned. But they are only a very small percentage of the many corporations and hedge funds already invested or planning to invest in Bitcoin, going by the recent surveys.

Recent surveys by Nickel Digital Asset Management and Intertrust Group reveal that close to 40 publicly listed hedge funds and corporations have now invested billions of dollars worth of Bitcoin investments.

About $43.2 billion worth of Bitcoin is currently held by exchange-traded products (ETPs) and closed-end trusts according to the survey by Nickel Digital Asset Management. The survey showed that more and more of these organizations continue to allocate more portions of their cash holdings to crypto investments.

The survey shows that about 19 publicly-listed companies around the world have Bitcoin allocations totaling about $6.5 billion. 13 of these come from Canada and U.S. while the rest are located in Europe, Hong Kong, and other countries of the world. Nickel also said that an additional 17 companies have added exposure to the Bitcoin asset. It, however, did not disclose these companies.

Earlier surveys also show that hedge funds will increasingly invest in Bitcoin in the future. For instance, Intertrust conducted a survey involving 100 senior-level hedge fund managers from America, Europe, and Asia. 98% of these said their funds would invest in Bitcoin in the next five years. One in six said they thought that cryptocurrency investment would constitute 10% of their total investment holdings.

Data from Carfang Group has also indicated that U.S. corporations have about $3.82 trillion in cash holdings on their balance sheets. Hence even if they allocated 1% of the total to cryptocurrency, this would total to about $38.2 billion of crypto holdings in the U.S. This represents a 6% increase in the current value of crypto holdings.

Source: Read Full Article