Mutual funds hold a collective Bitcoin hoard valued at $ 43.2 billion spread across a variety of vehicles including closed-end Bitcoin trusts and exchange-traded products.
Digital asset manager Nickel’s data shows the total inventory that mutual funds hold on behalf of their clients, including a range of retail, asset managers and institutional investors. More than three-fifths of these funds are based in North America, Nickel said.
Products linked to cryptocurrencies like Bitcoin are growing in popularity this year, and London investors are getting access to their first listed crypto-exposed products this month.
Banks like Morgan Stanley and Goldman Sachs have also expanded their offerings for their customers looking to get exposure to Bitcoin, planning undeliverable futures and Bitcoin ETFs through partnerships with crypto funds like Galaxy Digital.
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Nickel said that large companies’ bitcoin holdings entering the area have now totaled $ 6.5 billion, with 19 companies so far publicly declaring investments in the cryptocurrency. Thirteen of these companies are based in North America, such as Tesla and MicroStrategy, while three are European companies.
The mutual fund estimated that companies spent around $ 4.3 billion buying the cryptocurrency over the past two years, which translates into a potential profit of more than $ 2 billion.
A survey by Nickel earlier this year found that 81% of European institutional investors and money managers expect an increase in companies using Bitcoin for their treasury reserves. A third also expect this trend to increase dramatically.
Anatoly Crachilov, CEO of Nickel Digital, said the inclusion of crypto assets in portfolios of leading global wealth managers such as Paul Tudor Jones, Ruffer and Guggenheim Partners was “a very important confirmation of the emerging functionality of Bitcoin hedging against inflation”.
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Bitcoin and other cryptocurrencies remain extremely volatile, with the largest cryptocurrency having suffered several consecutive flash crashes of its price recently. Bitcoin began showing signs of recovery on June 15 as it climbed above $ 40,000, although analysts said it was too early to say whether the token could return to its all-time high of $ 64,829 in April .
“The crypto-assets space remains volatile as it goes through the early stages of an introductory curve,” Crachilov said alongside the June 15 data.
“However, it is expected that increasing allocations by large institutional and corporate actors will lead to a decrease in this volatility over time, thanks to a longer-term, firmer type of capital brought in by these investors, as well as a much larger pool of liquidity in crypto Ecosystem. “
To contact the author of this story with feedback or news, email Emily Nicolle