Is it too late for institutions to acquire Bitcoin now?

The significant surge in the value of Bitcoin
  • Institutional Investors are advancing towards Bitcoin investments at a very high speed
  • More and more companies are emerging to adopt Bitcoin as a store of value
  • The historic shift depends on the possibility of Bitcoin to translate into a digital alternative to gold

Recently, a Nevada-based Bitcoin mining company, Marathon Patent Group, purchased $150 million worth of Bitcoin in a reserve asset. The move seemed like a replication of MicroStrategy’s recent investment in Bitcoin with $425 million worth.

Besides, BlackRock recently announced its new file application to the United States Securities and Exchange Commission. It stated that Bitcoin deviates could now become members of its two associate funds. 

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BlackRock Global Allocation Fund Inc. and BlackRock Funds are the titles of the respective funds. This will also set an example for other giant asset management institutions like the UBS Group and Vanguard to mark their entry into the space of crypto investments.

The significant surge in the value of Bitcoin

Meanwhile, Kevin Rooke, a technology researcher, recently researched in the same context. The results remarked that publicly traded firms now own above $3.6 billion worth of Bitcoin. This implies a surge of 400% within the last year. Thus, institutions are now entering the Bitcoin market. The historic shift depends on the possibility of Bitcoin to translate into a digital alternative to gold.

On January 9, Bitcoin,s value soared from $7,250 (at the beginning of 2021) to record a high of $41,940. This surge indicates that the investors received a return of 303% on their respective investments of 2020 in Bitcoin. Thus, the returns exceeded the return of the convention market signallers like the Nasdaq Composite Index and gold by a notable margin.

Hence, the bitcoin returns are unusually high. This has created a fear-of-missing-out amongst the investors. Moreover, various primary traditional finance firms have predicted a value of $100,000 for Bitcoin by the end of this year. 

Is it too late now to enter the crypto space?

With so many institutions now entering the space of Bitcoin and other cryptocurrency assets, one could assume that these investors are possibly late to the party. Besides, they are purchasing assets at a higher cost point than the usual one. The case would have been different if they had surrendered to the crypto realm just a year ago.

However, Simon Peters, market analyst at eToro, commented on the same in an interview with Cointelegraph.

He explained that the institutions investing in Bitcoin now and establishing it as a reserve strategy can still be credited as early adopters. This credibility stands valid in a corporate sense. 

Simon suggested that the investors later look back at the beginning of 2021 as a golden chance to enter into the crypto space. He further affirmed that these early entrants are opening the playing field with a welcome for others.

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Andrew Smith
Andrew is a blockchain developer from his education and developed his interest in the cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer.

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