State-owned investment funds are reportedly making inquiries into purchasing Bitcoin [BTC].
In line with Robert Gutmann, CEO of New York Digital Investment Group, the firm has been having conversations with sovereign wealth funds regarding possible Bitcoin [BTC] investments.
Gutmann made this known while appearing at a virtual podcast with investment strategist & founding father of Real Vision Raoul Pal.
Pal also confirmed Gutmann’s revelation, adding that Singapore’s sovereign wealth fund Temasek was indeed a Bitcoin investor.
In line with Pal, Temasek holds about $306 Bln in assets under management, has been purchasing virgin Bitcoin [BTC] from miners.
While tweeting earlier today on Thursday, Pal characterized the approaching entry of sovereign wealth funds into the Bitcoin space as a “wall of money.”
Moreover, since publicly-listed firms like MicroStrategy as well as Tesla began holding Bitcoin on their balance sheets, there has been speculation about whether governments would imitate.
Drawing parallels between the appeal of Bitcoin for public firms and sovereign wealth funds, Gutmann touched on the will of institutional investors to hedge their dollar-denominated liabilities.
In line with Gutmann, investors are re-evaluating their portfolios, explaining:
“If you look at the world today on a forward basis, it’s reasonable to be asking yourself as an investment committee or as an allocation committee [if] having all of [they’re] assets denominated in dollars against dollar-denominated liabilities is the right allocation mix.”
Earlier in August last year, upon announcing its primary Bitcoin [BTC] purchase, MicroStrategy CEO Michael Saylor touched on the long-term value of BTC vis-a-vis the depreciating value of money over time.
Also earlier in March, Russ Koesterich, portfolio manager at BlackRock’s Global Allocation Fund characterized gold’s status as an inflation hedge as being exaggerated.
Bitcoin [BTC] is presently down 7.17% over the last 24 hours in what’s likely an upside price dislocation given the many declines within the volume of Bitcoin persisted exchanges. Despite the present drop, BTC remains up about 78% year-to-date.