In recent weeks, The US Securities and Exchange Commission (#SEC), have come after #Binance , the world's leading #cryptocurrency #exchanges, accusing the company of operating an unregistered trading platform and violating securities laws. As a result, the value of #Bitcoin and other cryptocurrencies dipped.
However, while some investors have been scrambling to defend Binance, some of the largest investment firms in the US have been quietly buying up Bitcoin at a discount. Grayscale, SkyBridge Capital, Rothschild Investment Corporation, and #BlackRock have been among the firms taking advantage of the dip in prices that followed the accusations against Binance.
Grayscale, owned by Digital Currency Group, manages over $30 billion in assets and has been aggressively buying up Bitcoin throughout 2021. SkyBridge Capital, with approximately $9.3 billion in assets under management, recently launched a Bitcoin fund, and Rothschild Investment Corporation, a multi-billion dollar investment firm, has also been increasing its Bitcoin holdings.
BlackRock, one of the largest asset management companies in the world with approximately $9 trillion in assets under management, has also been dipping its toes into the world of cryptocurrencies. According to #CNBC, the company has recently started investing in Bitcoin futures through two of its funds.
While it remains unclear whether these investment firms are working with the SEC, their actions highlight the power of institutional investors in the cryptocurrency market. Bitcoin, once seen as a fringe asset, is now being bought up by some of the largest and most influential investment firms in the world.
The trend of institutional adoption of cryptocurrencies is likely to continue as more and more investors begin to see the potential of cryptocurrencies as an asset class. However, concerns over volatility and regulation remain. Regardless, the involvement of companies like #Grayscale, #SkyBridge Capital, #Rothschild Investment Corporation, and BlackRock suggests that the cryptocurrency market is maturing and becoming more mainstream.
