GoldenTree Asset Management, a hedge fund with $ 45 billion assets under management, reportedly added Bitcoin to its balance sheet.The number of large institutions accumulating Bitcoins keeps increasing!
In particular, founded more than two decades ago, GoldenTree is an asset manager based in New York City. Also, with offices in many other major financial cities such as London, Singapore, Tokyo, and Sydney.
According to a report, the institution has dived into the cryptocurrency industry by purchasing an undisclosed amount of Bitcoin.
Specifically, as reported on Friday by the media outlet “The Street”, GoldenTree Asset Management bought Bitcoins to diversify from the conservative debt-based strategies it has used in the past.
Interestingly, “The Street” did not identify its sources. But, he only said that «They were granted anonymity, to discuss sensitive business matters».
Incidentally, GoldenTree executives, including founder Steven Tananbaum and partners Deeb Salem and Joseph Naggar, this month invested in a funding round for Borderless Capital, which previously helped launch an Algorand accelerator program.
Does GoldenTree add Bitcoin to its balance sheet?
In fact, according to financial news outlet The Street, GoldenTree bought a certain amount of Bitcoin (BTC). But, it has apparently moved away from investing in other cryptocurrencies.
In short, citing two sources with knowledge of the matter. The publication reported that the Bitcoin purchase came after discussions among executives about hiring staff familiar with cryptocurrency investments.
However, the source added that GoldenTree’s partners already have experience in trading cryptocurrencies. Likewise, making VC-style investments.
As a fun fact, it is unknown how much Bitcoin GoldenTree has bought. Also, how much you plan to buy in the future. And, what kind of custody solution will they use.
Some institutions that accumulate Bitcoin
In this way, with GoldenTree, the number of large asset managers showing an appetite for Bitcoin continues to grow. For example, BlackRock, ventured into BTC through CME and reported earnings of $ 360,000 in April of this year.
Also, Stone Ridge, another Wall Street giant, filed an application. To add the cryptocurrency to your diversified alternative funds.
Similarly, MicroStrategy has accumulated BTC massively over the last year and has over 100,000 Bitcoins on its balance sheet. During his Q2 2021 earnings announcement, he noted that he will continue with the Bitcoin strategy.
Similarly, this trend also spread outside the United States. With the Israeli company, Altshuler Shaham, buying Bitcoin through the Grayscale Bitcoin Trust.
Furthermore, Germany has entered a law that allows institutional players to invest up to 20% of their assets in digital currencies. This law will take effect as of August 2 of next week.
By the way, the regulatory environment is maturing. And therefore institutions are hopeful that Bitcoin is here to stay.
Finally, is it because of the supposed investment of GoldenTree, that the price of Bitcoin (BTC) has risen? And has it skyrocketed to $ 41,200? Leave your opinion in the comment box.
I say goodbye with this phrase from Antoine de Saint-Exupery: «Perfection is finally achieved, not when there is nothing to add, but when there is nothing to obtain.».