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- Last quarter, the New Jersey Pension Fund invested heavily in two Bitcoin mining behemoths
- Miners are also a much safer target until the US government authorizes the long-awaited Bitcoin ETF
- The intention of the New Jersey Pension Fund is obvious, and they are willing to put their money where their mouth is
The New Jersey Pension Fund made significant investments in two Bitcoin mining behemoths last quarter. For institutional investors, the move may be a tiny step toward something much greater. At the highest echelons, there is a desire for Bitcoin exposure, but just owning the asset may be too hazardous or cumbersome for some of those major players. Miners are also a much safer target until the US government authorizes the long-awaited Bitcoin ETF.
According to disclosure filings, the state-managed pension had $3.66 million in Riot Blockchain (NASDAQ: RIOT) and $3.39 million in Marathon Digital Holdings (NASDAQ: MARA) at the end of June. New Jersey’s Common Pension Fund D has a total asset value of $30 billion for state employees.
The intention of the New Jersey Pension Fund is obvious, and they are willing to put their money where their mouth is. Is there, on the other hand, a reason why they don’t wish to keep the asset? Maybe there’s a legal justification behind it? The debate.
In this tweet, Michael Saylor explains their reasoning which was that because they desire BTC exposure yet prefer to hold securities rather than property owing to tax, accounting, and business reasons, many institutional investors find publicly traded Bitcoin miners to be appealing investments. Apart from Bitcoin’s volatility, there are numerous more causes. Despite this, there is a hunger.
Bitcoin is developing and gaining traction. As we already stated, the market is now quite speculative, with the bulk of investors trying to make a fast buck. Institutional investors have taken notice of this and have mostly avoided investing in the business.
Rather than earning a fast buck, these investors are aiming for long-term returns and building customer confidence. The tables had been turned. The situation had shifted. We are currently in an age in which some of the more forward-thinking institutions have already invested and driven the price to ridiculous all-time highs… just to withdraw their profits and allow the price to plummet again. In any event, Bitcoin is proven to be a viable investment option for institutions. NewsBTC had this to say about the situation:
These high-net-worth individuals, who have decades of market expertise and a variety of strategies at their disposal, were critical in driving prices up to $60,000 a coin. Regrettably, the evidence shows they were also involved in the selloff that resulted in a bloodbath among ordinary traders. The feasibility of a Bitcoin ETF in the United States is the sole element that has yet to be investigated.
As one may be aware, every financial institution and their mothers applied, and some were previously turned down. Hester Pierce, a Securities and Exchange Commission (SEC) Commissioner, said that institutions want to be able to buy cryptocurrency on a controlled market.) It makes sense for us to think about how we can achieve that they have gotten themselves into a bit of a bind. A lot of individuals are trying to figure out how to get into the asset class. This type of goods has taken a long time for us to approve.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
