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02
Jun, 2020

Increased Demand for Crypto Funds Investments

Many hedge funds who are active in Bitcoin and crypto investing, seem to face a surprising demand for crypto investing from institutional investors.

 

Who are institutional investors?

The institutional investors are considered private and public organizations with a financial surplus, willing to invest in assets according to their risk profiling. Usually, institutional investors’ portfolios are heavily diversified as they try to reduce risks, coming from the market.

 

Why do they turn on Bitcoin?

Bitcoin, especially after halving, has become an alternative hedge outside of traditional markets and got affected much less from market moves. In parallel, Bitcoin’s deflationary nature and denial of printing more coins, in contrast with conventional policies from central banks based on money printing, gives a new dimension in money’s economic value.

 

Many brokerage firms who have created companies or products based on Bitcoin such as Grayscale announced that institutional investors’ interest surpasses any expectation and prepares for new steps in the space.