A renowned fund, the Emerald Finance & Banking Innovation Fund, has announced its investments in the Grayscale Bitcoin Trust (GBTC), a “trust” for the largest cryptocurrency. Here are the details…
Cryptocurrency investment from the famous fund
The Emerald Finance & Banking Innovation Fund is the latest to announce that they hold Bitcoin through the Grayscale Bitcoin Trust (GBTC). This fund is aimed at “companies primarily engaged in banking or financial services”. It also invests in “collective investment instruments” such as mutual funds and exchange-traded funds, which primarily invest in companies engaged in banking and financial services. Investing in GBTC may seem a little out of place, as Bitcoin is not a “bank or financial services company.” But it is about financial services that facilitate global trade and payments. Therefore, the fund has GBTC worth $2.6 million.
The Emerald fund is not the only fund that invests in GBTC. As we reported on Kriptokoin.com, Morgan Stanley announced that they have purchased GBTC worth $3.6 million for the Morgan Stanley European Opportunity Fund. As you can imagine, this fund invests in European companies. However, BTC took its place in the fund as a diversifier, accounting for about 1 percent of the fund’s total assets.
Many funds have Bitcoin in their portfolio
Previously, Saba Capital Income & Opportunities Fund announced that they hold GBTC worth $1.3 million. This is a more diversified fund with the addition of Bitcoin, showing that the asset could become a trend in passive funds. BlackRock, one of the biggest investment managers, stated that they can add Bitcoin to their Global Allocation Funds. The Global Allocation Fund is generally the most diversified fund as they invest in all global assets.
But so far, they haven’t bought Bitcoin yet. However, there may be other passive funds that hold Bitcoin but have not received attention. Still, these names are pretty big, and while the numbers have been a bit small so far, Bitcoin’s presence in big funds is getting the cryptocurrency space excited. Many believe that the funds could include larger amounts of Bitcoin or altcoins in the future.
Ultimately, this means basically every investor has exposure to Bitcoin. For some, that means we’re probably past the breaking point that investors are worried about. Because Bitcoin could go mainstream in a way that investors won’t even know they own. Time will tell what will happen in the future. At the time of writing, BTC is changing hands at $21,275, up 0.5 percent. The coin recorded a significant increase in value by 20 percent in the 7-day period.
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