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Wall Street has been all over Bitcoin for the past few months due to the growth in the need for an inflation hedge and a relative stagnation in gold prices compared to other asset classes. This was recently confirmed when a Wall Street veteran and former White House staffer launched a BTC fund with his own $ 25 million investment, showing the demand for the lead crypto asset.

Related reading: This is why Ethereum’s DeFi market can be near a bottom

Scaramucci Kickstarts Bitcoin Fund

According to Yahoo FinanceAnthony Scaramucci, the founder of $ 9.2 billion fund-of-funds SkyBridge Capital, has launched a Bitcoin fund to enable registered investment advisers (RIAs) to invest in BTC.

SKyBridge, which will operate the fund, recently filed a Form D with the Securities and Exchange Commission for this new fund.

To kickstart the fund and show that he has confidence in it, founder Scaramucci invested $ 25 million of his own capital in the fund.

He thinks this fund will enable a greater number of investors to gain exposure to BTC. The problem is that many institutional players or even retailers find it difficult to invest in BTC.

Related reading: Tyler Winklevoss: There will be a “Tsunami” of capital for Bitcoin

Wall Street support is swelling

In a sign of continued Wall Street support for Bitcoin, the number of coins on exchanges has fallen sharply. Referring to the chart below, Rafael Schultze Kraft, Glassnode’s CTO, recently stated:

“#Bitcoin is in a supply and liquidity crisis. This is extremely bullish! And greatly underestimated. I think we will see this significantly reflected in the price of Bitcoin in the coming months. Let’s take a look at the data. “

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Chart of BTC's price action over the past decade with an on-chain analysis of btc on exchanges from Rafael Schutlze Kraft, CTO of Glassnode
Chart from Glassnode, a crypto data source

A major consumer of these coins is MicroStrategy. The U.S. business services company wrote in a press release earlier this week that it purchased $ 650,000,000 worth of BTC:

TYSONS CORNER, Va. – (BUSINESS WIRE) – Dec. 21, 2020– MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly traded business intelligence company, today announced that it has purchased approximately 29,646 bitcoins for approximately $ 650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of about $ 21,925 per bitcoin, including fees and costs. “

The company believes that over time, BTC will appreciate to surpass the value growth of its debt as it purchased these coins with debt generated from the sale of senior convertible bonds.

Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Wall Street Veteran Kickstarts Own BTC Fund With $25m Investment





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