The world’s largest bitcoin mutual fund
Bitcoin hit an all-time high of nearly $65,000 in April 2021. Many analysts see mutual funds as the main driver of this growth. Meanwhile, reports also show the phenomenon of buying bitcoins in bulk from whales (shark). In this article, we will name the largest funds invested in Bitcoin from late 2020 to early 2021.
Square Inc. Investments
On October 8, 2020, Square Inc purchased approximately 4,709 bitcoins. The investment represented approximately 1% of Square’s total assets at the end of Q2 2020.
Square Inc is one of the leading mutual funds investing heavily in Bitcoin. In 2018, they launched a bitcoin trading app called Cash that allows you to buy and sell bitcoins.
According to CoinDesk news, Ruffer invested 2.5% of his $27 billion portfolio in Bitcoin in November 2020.
Regarding investing in Bitcoin, Ruffer said that macroeconomic factors influenced the decision. Added callers:
“Negative interest rates, tight monetary policy, rising national debt, dissatisfaction with the government. All of this creates a strong headwind for Bitcoin at this point. When traditional safe havens are too expensive, especially government bonds.
Guggenheim Partners is a Wall Street firm that has shown interest in Bitcoin. The filing by the company, which was filed with the SEC on November 30, 2020, shows that it has the right to invest up to 10% of its net assets in the Grayscale Bitcoin Trust. Trusts investing in Bitcoin are represented by Grayscale shares.
The Guggenheim Foundation has about $5.3 billion in assets under management, so a 10% investment is worth about $530 million. Although Guggenheim Partners does not currently invest directly through Grayscale, experts say that Guggenheim Partners invests heavily in Bitcoin.
Invest in Massachusetts Mutual Life Insurance
On December 11, 2020, the American Insurance Company of Massachusetts purchased $100 million worth of bitcoins for its mutual fund.
MassMutual says its investment in Bitcoin accounts for 0.04% of its total investment fund of nearly $235 billion. MassMutual spokesperson Chelsea Haraty said in an email:
“We see this investment as a first step. We can explore new opportunities in the future.”
Invest in SkyBridge Capital
Anthony Scaramucci (former White House Executive) SkyBridge Capital invests $182 million in Bitcoin. Anthony Scaramucci says that “Bitcoin is digital gold” and even “better than gold”.
Previously, SkyBridge has partnered with Fidelity Digital Assets and Silvergate for digital asset storage and other banking services. They are two well-known companies for investing and providing solutions related to digital currency.
Additionally, SkyBridge will launch a dedicated Bitcoin fund in early 2021. The company has applied for US Market Authority approval.
On February 8, 2021, Tesla announced it had purchased $1.5 billion worth of bitcoins. Tesla is the world’s largest electric car company, currently led by billionaire Elon Musk. He regularly tweets about bitcoin and crypto.
Tesla says it’s buying bitcoin for “added flexibility to further diversify and maximize our cash yield.” This was found in filings with the Securities and Exchange Commission (SEC).
Tesla also said it would start accepting Bitcoin payments for its products. This makes Tesla the first major automaker to accept cryptocurrency. But now they have stopped accepting bitcoin payments due to school specific reasons.
Meitu is a Chinese company that is famous for its photo app. Meitu has announced it will buy more Ethereum and Bitcoin. This brings the total amount of cryptocurrency held to $90 million.
Specifically, on March 17, 2021, Meitu bought another $28.4 million worth of Ethereum and $21.6 million worth of Bitcoin. In early March, Meitu said it had bought $22 million worth of Ethereum and $17.9 million worth of Bitcoin.
“Blockchain has the potential to change today’s financial and technology industries. Just as the mobile internet has changed the PC internet and many other industries. The Board believes that cryptocurrencies have a lot of room for appreciation. By being part of the budget reserved for crypto investments, companies can diversify its cash management holdings.
However, Meitu also acknowledges that Bitcoin and Ethereum tend to have high price volatility.
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