Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
As Bitcoin (BTC) price continues to trade at a crucial junction, thereâs a mix of views coming from institutions on Bitcoin. On Wednesday, January 20th, the worldâs largest asset manager BlackRock filed with the U.S. SEC seeking exposure to bitcoin (BTC). On the other hand, Barclays clearly opposed the Bitcoin adoption among wealthy investor. BlackRock has filed Futures investment for two of its funds â the BlackRock Funds V and BlackRock Global Allocation Fund, Inc. The SEC filing submitted by BlackRock reads:
âCertain Funds may engage in futures contracts based on bitcoinâ adding that Aâ Fundâs investment in bitcoin futures may involve illiquidity risk, as bitcoin futures are not as heavily traded as other futures given that the bitcoin futures market is relatively new.â
BlackRock has also clarified that its funds might invest in cash-settled Bitcoin futures that are traded on commodity exchanges registered with the CFTC. On one hand, when BlackRock is looking for an entry into Bitcoin (BTC), the Barclays Private Bank presents an absolutely contrasting view. Gerald Moser, chief market strategist at Barclays stated that Bitcoin isnât a viable asset for heavyweight investors to hold in their portfolio. Mr. Moser said:
âWhile it is nigh on impossible to forecast an expected return for bitcoin, its volatility makes the asset almost âuninvestableâ from a portfolio perspective. With spikes in volatility that are multiples of that typically experienced by risk assets such as equities or oil, many would probably throw the cryptocurrency out of any portfolio in a typical mean-variance optimisation.â
Barclays is not the only institution opposing Bitcoin. Recently, wealth management giant UBS said that cryptocurrencies including Bitcoin can go to zero. However, the fact remains that billionaire investors like Paul Tudor Jones, Stanley Druckenmiller, Scott Minerd, and many others have endorsed investments into the worldâs largest cryptocurrency.
The Grayscale Bitcoin Trust (GBTC) which is a safe haven for institutions to gain exposure to Bitcoin has poured billions of dollars in aggressive Bitcoin purchases in recent times. Grayscale has revealed that a majority of inflows in GBTC are coming from institutions.
But, amid all the institutional frenzy around Bitcoin (BTC), lawmakers can play a spoilsport in the entire game putting a spanner in the wheel of âinstitutional Bitcoin buyingâ.
U.S. Treasury Secretary Nominee Calls for Curtailing Crypto, BTC Price Reacts
In recent times, just as Bitcoin continues to gain popularity among financial institutions, lawmakers have turned out to be more hostile towards it. On the day when the 46th U.S. President Joe Biden took the oath, former Fed chairperson and treasury secretary nominee Janet Yellen called the need to âcurtailâ the use of cryptocurrencies.
Yellen said that Bitcoin and other cryptocurrencies are mainly used for illegal activities like terror financing. This clearly suggests that the incoming Biden administration could be hostile to cryptocurrencies. âI think we really need to examine ways in which we can curtail their use and make sure that money laundering doesnât occur through those channels,â said Yellen.
Yellenâs comments come a week after ECB President Christine Lagarde slammed Bitcoin calling it a âfunny businessâ and a âspeculative assetâ. Similarly, former IMF chief economist Raghuram Rajan called Bitcoin âa classic bubbleâ.
With such disparity between the institutions and lawmakers, we can possibly see the two sections locking horns in near future.
The post BlackRock & Barclays Share Contrasting Views on Bitcoin (BTC), Institutional Game Gets Tough appeared first on Coingape.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.