Bitcoin goes mainstream as institutions hold 3% of BTC’s circulating supply

Argoo

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Quote from: tinopener on February 17, 2021, 08:08:43 AM

Something that tends to go unnoticed outside the UK media is that Ruffer Investment Company bought $600m of Bitcoin a couple of months ago, and may have been the first big institution to buy.

However, they sold half recently in order to get back their original stake.

Ruffer is a strange investment company though, as they concentrate on absolute return which means a small profit over any given year in all market circumstances. They tend to buy bonds and commodities too.

Therefore it is probably no surprise then that they took profit quite quickly.

And also, they are an out and out investment company whose mission is to provide profit for investors, rather than a corporate like Microstrategy who want to hedge their balance sheet against inflation or whatever.

The Ruffer Investment Company appears to be investing in bitcoin for a short time in order to make a quick profit. They will not keep their investments for long. They will fix profits and expect a significant drop in the price of bitcoin. In fact, they differ from other investors in the form of ownership and the amount of invested capital. However, this is good for the cryptocurrency market anyway. Companies' investments are more reliable, there are no hasty and rash decisions in them.

eaLiTy

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Quote from: Lorence.xD on February 18, 2021, 04:45:38 AM

Quote from: eaLiTy on February 17, 2021, 02:49:14 PM

You need to understand that mainstream does not mean that a few institutional investors are holding 3% of BTCitcoin in circulation. In my view main stream should mean when majority of people enters the market and not just when a few institutional investors hold majority of the coins.
The rally is based on these institutional investments in the past one year and some of the multi national companies are trying to incorporate BTCitcoin in their business.

I am kind of confused in this one, there was a thread about this about the amount that the institutional investors are hodling and it was around <=1% so I can't believe this number exactly because there is a conflict. For me, mainstream is a combination of the companies and the public adopting bitcoin. We can't really blame that they buy a lot of bitcoin because the public individually is very weak and can't afford a lot of bitcoin. Can't be worried about it though, as more of this companies continuously buy bitcoin then the more the price increase because there are less in supply.

The total amount of BTCitcoin held by institutional investors is worth billions and it is hard to evaluate how much they are holding without all of them revealing how much they are holding. Mainstream in my view is always more people coming into the market rather than BTCitcoin can be termed as a capitalist tool where only people with huge investment can use. I knew this is coming and there is nothing you can do about it.

Lorence.xD

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Quote from: eaLiTy on February 17, 2021, 02:49:14 PM

You need to understand that mainstream does not mean that a few institutional investors are holding 3% of BTCitcoin in circulation. In my view main stream should mean when majority of people enters the market and not just when a few institutional investors hold majority of the coins.
The rally is based on these institutional investments in the past one year and some of the multi national companies are trying to incorporate BTCitcoin in their business.

I am kind of confused in this one, there was a thread about this about the amount that the institutional investors are hodling and it was around <=1% so I can't believe this number exactly because there is a conflict. For me, mainstream is a combination of the companies and the public adopting bitcoin. We can't really blame that they buy a lot of bitcoin because the public individually is very weak and can't afford a lot of bitcoin. Can't be worried about it though, as more of this companies continuously buy bitcoin then the more the price increase because there are less in supply.

Sithara007

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Quote from: DeathAngel on February 17, 2021, 04:28:37 PM

That 3% is going to grow over the coming months & years. They’re all going to want to hedge against failing fiat currencies. We are going to see many more large corps putting bitcoin on their balance sheet. Saylor & Musk are leading the way.

3% in 2021 may become 30% in 2031. But is that such an issue? The remaining 70% will still be with the individual investors. Obviously in due course of time the individual investors will cash out and the institutions will increase their holdings. But that happens everywhere. Look at the Apple stock. Steve Jobs initially held 65.4% of the shares, and the remaining 34.6% was held by Steve Wozniak. But at the time of the IPO, these two held only 18.4% of the shares, and the figure is even lower now.

Willitivity

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It's actually a dream come through to see this institutions finally start to buy and appreciate bitcoin for what it brings to the table. Been a long time coming so it's a good thing that institutions are pouring in funds everyday into bitcoin.

Quote from: DeathAngel on February 17, 2021, 04:28:37 PM

That 3% is going to grow over the coming months & years. They’re all going to want to hedge against failing fiat currencies. We are going to see many more large corps putting bitcoin on their balance sheet. Saylor & Musk are leading the way.

It all starts with one corp making a movement and then other ones will follow suit too. It won't be too long before other big institutions and funds joins the party.

DooMAD

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These are just the ones we know about. It's not unrealistic to assume that some of the more traditional firms probably flew in under the radar even earlier than the ones who have been making all the recent headlines by announcing it publicly. Perhaps not in such abundant quantities, but they wouldn't need vast amounts if they got in early enough. I'm half expecting a few to come out saying "hey, look what we did in without any fanfare back in 2018/19".

I'd still prefer to see more ordinary people get involved, though. But it's difficult when people are generally impatient and reluctant to learn new habits. My hope was that Bitcoin would naturally strike an equal balance between currency and asset class, but the needle on the gauge appears to be swinging predominantly towards the latter at this stage. It can still be used as a currency, but if the average, currently uninitiated, person sees all this corporate acquisition, my concern is that they won't be able to see it as anything other than an asset.

DeathAngel

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That 3% is going to grow over the coming months & years. They’re all going to want to hedge against failing fiat currencies. We are going to see many more large corps putting bitcoin on their balance sheet. Saylor & Musk are leading the way.

20kevin20

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They'll likely only keep purchasing and within few years, we'll probably have a significant % of the supply taken by them. This is amazing and sucks at the same time, considering most of the supply will be sitting in the hands of few people..

Quote from: tinopener on February 17, 2021, 08:08:43 AM

Something that tends to go unnoticed outside the UK media is that Ruffer Investment Company bought $600m of Bitcoin a couple of months ago, and may have been the first big institution to buy.

A piece of information I have posted a few hours ago has gone unnoticed as well. IBC Group from Dubai has recently made the largest investment in Bitcoin history.

eaLiTy

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Quote from: mamamu111 on February 17, 2021, 05:37:35 AM

Institutional investors are rapidly gobbling up Bitcoin, and currently, nearly 3% of the Bitcoin (BTC) in circulation are locked up in long-term holdings by these investors.

You need to understand that mainstream does not mean that a few institutional investors are holding 3% of BTCitcoin in circulation. In my view main stream should mean when majority of people enters the market and not just when a few institutional investors hold majority of the coins.
The rally is based on these institutional investments in the past one year and some of the multi national companies are trying to incorporate BTCitcoin in their business.

Poker Player

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Yes, it is clear that we are in the institutional adoption phase. This phase will be remembered as such. What characterized the previous phase was retail investing while this one is institutional purchasing. I expect this will leave us with a super cycle, with a price cap between $800k and $1M. I see it as difficult, but the theory is there.

bassbity

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Indeed, overcoming the conditions under which bitcoin must always make large investors have high confidence in these long-term holdings. bitcoin is already in their pocket and we can only watch because we don't have big money to store bitcoins. Based on the latest data shows that bitcoin is becoming popular among big businessmen in western countries. we cannot compete against their finances.

masterrex

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Quote from: mamamu111 on February 17, 2021, 05:37:35 AM

Institutional investors are rapidly gobbling up Bitcoin, and currently, nearly 3% of the Bitcoin (BTC) in circulation are locked up in long-term holdings by these investors. READ THE COMPLETE ARTICLE HERE: https://worldpublicityblog.com/index.php/2021/02/16/bitcoin-goes-mainstream-as-institutions-hold-3-of-btcs-circulating-supply/

Thats good news at last Bitcoin was already adopted by institutional investors, But I'm still hoping that the number will increase because it is just a small part of the total bitcoin in circulation, and most of the supply is just holding by a few people which is not good. By the way, is it possible that some other institutional investors are already investing in Bitcoin but they make it private? It is only speculation but who knows it already happened in the background.

OcTradism

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3% of BTC's circulating supply is the small figure but it was used to magnify the importance and power of institutional investments. I don't blindly ignore that figure and say institutes did not bring any positive effects to bitcoin and crypto market. They have a lot of contributions but the magnification and exaggeration on their importance are what I don't like much.

Exaggeration is similar to lie and when the lie is uncovered, side effects will come consequently. I don't think institutes will never sell out their bitcoin. They might hold their bitcoin for longer than retail investors but some days they will take profit. It is what I, we don't know now.

Fundamentals Of

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Mainstreaming of Bitcoin is indeed going to be made faster if institutions are making their moves. Retail investors and users are sometimes acting only in reaction to the first moves done by the institutions. The decision of the institutions to buy Bitcoin somehow serve as a warrant or a guarantee that Bitcoin is a sound technology to put money in and that it has a bright future because they are trusting it themselves. Only then will the rest of the ordinary people do their own share of buying.

DapanasFruit

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This is a big manifestation of the kind of interest that institutional firms are showing for Bitcoin, and I am expecting that in the following months of this year 2021 more can be coming open that they are already a big part of the Bitcoin party. This can be the big reason why instead of having a healthy correction, Bitcoin instead made a home-run towards $50K and beyond. Such is the power of big money to push Bitcoin to levels which it has never threaded before and with the waking up of the retail investors there can be convergence of factors here...putting Bitcoin on a rocket towards the moon and beyond for sure.

so98nn

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The Ruffer’s !! No wonder the news is flashing everywhere. However on top of this, I have started to think that secretely mutual fund companies and banks are putting their money into bitcoin as well to give higher returns to their customers. Lolz

Or they could be holding it for the politicians or black money holder as well.

There are N-number of possibilities for the bitcoin considering its price just broke out 50k usd. I’m literally baffled with all the predictions out there now.

Bitcoin going mainstream is very natural at this point since it has caught the eye of eagle now.

tinopener

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Something that tends to go unnoticed outside the UK media is that Ruffer Investment Company bought $600m of Bitcoin a couple of months ago, and may have been the first big institution to buy.

However, they sold half recently in order to get back their original stake.

Ruffer is a strange investment company though, as they concentrate on absolute return which means a small profit over any given year in all market circumstances. They tend to buy bonds and commodities too.

Therefore it is probably no surprise then that they took profit quite quickly.

And also, they are an out and out investment company whose mission is to provide profit for investors, rather than a corporate like Microstrategy who want to hedge their balance sheet against inflation or whatever.

mamamu111

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Institutional investors are rapidly gobbling up Bitcoin, and currently, nearly 3% of the Bitcoin (BTC) in circulation are locked up in long-term holdings by these investors. READ THE COMPLETE ARTICLE HERE: https://worldpublicityblog.com/index.php/2021/02/16/bitcoin-goes-mainstream-as-institutions-hold-3-of-btcs-circulating-supply/

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