Coinbase has disclosed that it has had an “inflow of capital”. Are assets for safekeeping currently stands at $ 20 billion, of which $ 14 billion has been collected since April. Coinbase highlights a series of bullish events that have “unleashed” a wave of institutional adoption.
Coinbase has $ 20 billion in custody
Coinbase’s Head of Institutional Coverage, Brett Tejpaul, spoke about the institutional demand for bitcoin in an interview with Heidrick & Struggles International published Friday.
Tejpaul has 25 years of sales and trading experience, with nearly 17 years at Barclays and nine years at JPMorgan. He explained that he joined Coinbase six months ago and is now “responsible for increasing institutional adoption of cryptocurrency, for sale, trade, custody and Prime.” Prime is Coinbase’s services for institutional clients including asset managers, hedge funds and VCs.
“It’s a phenomenal time for crypto … Sometimes timing is everything,” said Tejpaul. “We have experienced an explosion of activity,” he added, explaining:
I joined in April this year, at that time our assets, institutional assets in custody were $ 6 billion, today we are at over $ 20 billion, so more than three times.
“Earlier in the summer, we acquired an execution platform called Tagomi, and it took us over from one day to the next. It has radically changed our ability to accommodate institutional clients looking to use smart order routing and algorithmic execution. are twenty times higher than at the beginning of the year, ”continued Tejpaul.
“We are now measuring the fresh capital coming into crypto, mainly allocated to bitcoin in the billions,” he described, noting:
Week after week after week, we have had an explosion of incoming capital.
Tejpaul said Coinbase has “upgraded” its banking and audit partners: JPMorgan and Deloitte. “Both firms went through a one to two year due diligence to make sure we have the right KYC and AML, and that we are taking a kind of attitude and acting like a bank and we have chosen to regulated, and so we are a safe disaster. “
He then highlighted recent bullish events in the crypto space, starting with famed hedge fund manager Paul Tudor Jones, who said in May that he was putting about 2% of his portfolio into bitcoin. In October Jones said he saw it many advantages for bitcoin.
Jones’s decision “was important because it served as a calling card for other traditional macro companies, who view bitcoin as a store of value, bitcoin as a potential tail-end risk hedge to the portfolio,” Tejpaul explained, adding:
We have seen an incredible wave of institutions follow Paul’s example.
He also called it the Nasdaq-listed Microstrategy invested $ 425 million in bitcoin and made the cryptocurrency its primary treasury reserve. CEO Michael Saylor has become a bitcoin bull, investing personally $ 240 million in BTC.
Other famous hedge fund managers who have made bullish statements about bitcoin include Bill Miller, who said every major bank will eventually have exposure to bitcoin, and Stan Druckenmiller, which called bitcoin an attractive store of value that could beat gold.
Tejpaul went on to say what a typical day is for him on the podcast. “At 9:30 AM, five separate institutional clients were called to each invest more than $ 100 million.” He explained that people sitting on the sidelines “ now look at big banks, big accounting firms, big hedge funds, big donations and now Paypal come into this space ‘, concludes:
It really has unleashed a second wave of institutional adoption.
What do you think of institutional investors flooding into crypto? Let us know in the comments below.
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