NYDIG confirms: More and more governments want to get into Bitcoin
Singapore’s sovereign wealth fund has already invested in Bitcoin. And other governments now want to follow suit.
Sovereign wealth funds are showing increased interest in Bitcoin (BTC).
Robert Gutmann, CEO of New York Digital Investment Group, has revealed that his firm is already in talks with a number of sovereign wealth funds about Crypto Code possible investments in the market-leading cryptocurrency.
Gutmann had made the relevant disclosures on investment expert Raoul Pal’s podcast
Pal, the podcast host and founder of Real Vision, in turn confirmed on Twitter that Gutmann had disclosed to him that Singapore’s sovereign wealth fund has already invested in Bitcoin.
According to Pal, the sovereign wealth fund called Temasek, which has $306 billion worth of assets under management, has bought the bitcoin in question directly from miners.
From the seemingly advancing market entry of sovereign wealth funds, the investment expert concludes that a „flood of money“ will soon be flushed into Bitcoin.
– Raoul Pal (@RaoulGMI) March 25, 2021
Since major corporations such as MicroStrategy and Tesla started investing in the market-leading cryptocurrency, speculation of governments and their sovereign wealth funds entering the market has increased.
During the podcast, Gutmann explained the reason for this, because similar to large companies, governments would also have the need to hedge their assets and capital denominated in US dollars.
This issue would then carry over to the design of their sovereign wealth fund portfolios:
„Looking ahead, as an investment committee of a sovereign wealth fund, you have to ask yourself whether it makes sense to have all assets denominated in US dollars versus all capital denominated in US dollars.“
In August 2020, MicroStrategy’s CEO had already highlighted the cryptocurrency’s long-term advantages over fiat currencies on the software maker’s first investment in bitcoin.
Ross Koesterich, the portfolio manager at influential asset manager BlackRock’s Global Allocation Fund, had also confirmed in March that gold’s function as a hedge was overrated.
Although Bitcoin has lost significantly in recent days, the crypto market leader is still up 78% year-to-date, underpinning the strength of the alternative investment product.