As crypto adoption continues to establish itself in the mainstream, this digital asset management firm is showing where Bitcoin ownership is spreading among institutional investors.
London-based Nickel Digital Asset Management, established in 2018, reveals new research that there are now 19 publicly traded companies, each with over a $1-trillion market cap, that collectively invested $6.5 billion in Bitcoin, paying an initial sum of $4.3 billion.
Nickel found that seven of those companies first purchased Bitcoin in 2020, and about eight more companies, including Tesla, made allocations in the first four months of 2021.
Among those 19 corporations, research shows that 13 are located in the US and Canada, making up 65% of total Bitcoin holdings. Three others are European, and the remaining three are listed in Turkey, Hong Kong, and Australia.
As for the reason behind institutional investment, proponents, who are seeking refuge from loose monetary policies of central banks around the world, say it is Bitcoin’s transparent and defined monetary policy that continues to attract investors to the currency.
Only 21 million Bitcoin will ever be created, and they are hard-coded to be released slowly as the daily supply issuance is cut in half every four years. Currently, 18.5 million are already in circulation, meaning there’s only around 12% of the supply yet to be mined over the next century. The final Bitcoin won’t be mined until the year 2140, as coded.
This predictable and reliable monetary system is driving mainstream adoption as companies and communities become increasingly distrustful of the current economic climate, according to Nickel CEO Anatoly Crachilov.
“The COVID-19 crisis and the expansionary monetary policies implemented by the central banks in response to the crisis have dramatically changed the outlook for fiat currencies, heightening the risk of currency debasement.
This, coupled with the increasingly inflationary guidance by Fed and an ever-expanding pile of $18 trillion of negatively yielding global bonds, has encouraged many corporations to contemplate an allocation to alternative assets.”
Crachilov also argues that major fund managers such as Paul Tudor Jones, Bill Miller, Ruffer, and Guggenheim Partners including Bitcoin in their portfolio construction is another mainstream endorsement for crypto.
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