In the last quarter, the New Jersey Pension Fund invested heavily in the two Bitcoin mining giants. A small step for institutional investors, this step could mean much more. There is a thirst for access to bitcoin at the highest levels, but just owning an asset can be too risky or inconvenient for some of these big players. And until the long-awaited Bitcoin ETF is approved by the US government, miners will be a much safer target.
Related reading | Marathon Digital Holdings Announces 17% Increase in Bitcoin Production
According to Coindesk:
According to white papers, the government pension ended in June with $ 3.66 million on the Riot blockchain (NASDAQ: RIOT) and $ 3.39 million on Marathon Digital Holdings (NASDAQ: MARA).
New Jersey State Pension Fund D has $ 30 billion in total assets for civil servants.
The intentions of the New Jersey Pension Fund are clear and they are putting their money where they say it. However, is there a reason why they do not want to have an asset? Maybe a legal reason? The controversial Michael Sailor explains his reasoning in this tweet:
Listed bitcoin miners are viewed by many institutional investors as attractive investments as they want access to BTC but prefer to hold securities over property for tax, accounting and business reasons.
Thus, there are several reasons besides the volatility of bitcoin. However, there is hunger.
Nasdaq RIOT Price Chart | Source: RIOT on TradingView.com
Is Bitcoin Viable as an Institutional Investment?
Bitcoin matures and spreads. The headline phrase is the same used by NewsBTC three years ago in an article stating that the asset was not ready. We said this:
The market is very speculative at the moment and most investors are looking to make money quickly. Institutional investors saw this and for the most part avoided opening their portfolios to industry. These investors are looking for long-term profits to build consumer trust over time rather than making quick money.
The roles have changed. The situation has changed. Today we are at a time when some of the most innovative institutions have already invested and raised prices to insane highs … only to take their profits and lower them again. Either way, Bitcoin is proving its worth as an institutional investment. Regarding this situation, NewsBTC said:
These very wealthy players with years of market experience and all sorts of tactics on their side were instrumental in pushing prices up to $ 60,000 per coin. Unfortunately, the data above suggests that they also played an important role in the massive sales, which had a bloody impact on retailers.
Related reading | Brazil Approves Bitcoin ETF – SkyBridge Files For You
What about Bitcoin ETFs? Is it in the cards?
The only factor that remains unexplored is the possibility of a Bitcoin ETF in the United States. As you probably know, all financial institutions and their mothers have applied, and some have already been refused. NewsBTC quoted Hester Pierce, Commissioner of the Securities and Exchange Commission (SEC), as saying about the situation:
(Institutions) want access to cryptocurrencies through a regulated market. It is logical that we think how to proceed (…). We entered a small pit. Many people are looking for a way to access an asset class. We have been waiting for approval of this type of product for a long time.
Unfortunately for us, we are still waiting.
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