Institutions are becoming more interested in Bitcoin as a treasury asset. However, it is not available to all types of investors. In these circumstances, and with the correct expertise, these actors can take advantage of several alternatives that allow them to obtain exposure to Bitcoin without really purchasing it.
Because institutional investors represent vast quantities of cash, news of an ETF for cryptocurrencies being registered or an investment firm adding BTC to its portfolio is frequently hailed. Mostly because the sums managed by these groups have a favourable impact on prices.
Because institutional investors represent vast quantities of cash, news of an ETF for cryptocurrencies being registered or an investment firm adding BTC to its portfolio is generally hailed. Mostly because the funds managed by these organisations have a beneficial impact on prices.
However, as you may be aware, there is still a great deal of regulatory uncertainty around Bitcoin and other cryptocurrencies in the majority of countries. Uncertain restrictions – or none at all – frequently prevent investors from obtaining the assets since they suggest greater risks.
The choices of institutional investment firms are rarely made by a single person, so for a fund to invest in Bitcoin, for example, all of the people involved in the decision-making process would need to grasp it clearly and be okay with the volatility. Fortunately, this is starting to become a reality, as job advertising for major financial firms looking for crypto professionals are becoming more common.
Because of the nature of their business, many publicly traded firms’ stock tends to track the price of Bitcoin. Mining corporations are the most common example.
Even more so, mining companies have seen significant growth since China’s mining ban — the ones that didn’t have to relocate, that is. The drop in hashrate and consequently in mining difficulty kickstarter one of Bitcoin’s most profitable epochs for mining in terms of cost and price.
Furthermore, using the protocol Titan is developing, mining businesses will be able to optimise the hashrate created by these capital inflows into the industry, offering priceless new opportunities.