{"id":468050,"date":"2021-07-24T07:41:34","date_gmt":"2021-07-24T07:41:34","guid":{"rendered":"https:\/\/ktsl888.com\/?p=468050"},"modified":"2024-06-11T13:57:16","modified_gmt":"2024-06-11T13:57:16","slug":"investing-in-bitcoin-mining-business-is-also-a-sign-of-institutional-acceptance","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/investing-in-bitcoin-mining-business-is-also-a-sign-of-institutional-acceptance\/","title":{"rendered":"Investing In Bitcoin Mining Businesses Is Also A Sign Of Institutional Acceptance"},"content":{"rendered":"
Last quarter, the New Jersey Pension Fund invested heavily in two Bitcoin mining giants. A small step for institutional investors, the move might represent something much bigger. There\u2019s a hunger for Bitcoin exposure at the highest levels, but just owning the asset might be too risky or inconvenient for some of those big players. And, until the US government approves the long-awaited Bitcoin ETF, miners provide a much safer target.\u00a0<\/span><\/p>\n Related Reading | Marathon Digital Holdings Reported A 17% Spike In Bitcoin Mining<\/a><\/strong><\/em><\/p>\n According to <\/span>Coindesk<\/span><\/a>:<\/span><\/p>\n The state-managed pension ended June with $3.66 million in Riot Blockchain (NASDAQ: RIOT) and $3.39 million in Marathon Digital Holdings (NASDAQ: MARA), according to <\/span>disclosure<\/span><\/a> documents.<\/span><\/p>\n New Jersey\u2019s Common Pension Fund D has $30 billion in total assets for state employees.<\/span><\/p><\/blockquote>\n The New Jersey Pension Fund\u2019s intent is clear, and they put their money where their mouth is. However, is there a reason that explains why they don\u2019t want to hold the asset? A legal reason, perhaps? The polemic Michael Saylor explains their rationale in <\/span>this tweet<\/span><\/a>:\u00a0<\/span><\/p>\n Many institutional investors find publicly traded Bitcoin miners to be attractive investments because they want BTC exposure but prefer to hold securities rather than property due to tax, accounting, & business considerations.<\/span><\/p><\/blockquote>\n So, there are several reasons besides Bitcoin’s volatility. Nevertheless, there\u2019s a hunger.<\/span><\/p>\n <\/p>\n Bitcoin is maturing and spreading. The title phrase is the same NewsBTC used <\/span>three years ago in an article<\/span><\/a> that came to the conclusion that the asset wasn\u2019t ready. We said:<\/span><\/p>\n In its current state, the market is highly speculative, with a majority of investors looking to make a quick buck. Institutional investors have seen that, and have mostly shied away from opening their wallets for the industry. These investors are looking for long-term returns, securing the trust of consumers over time rather than making a quick buck.<\/span><\/p><\/blockquote>\n The tables turned. The situation changed. At the present, we are in an era in which some of the more innovative institutions already invested and drove the price to insane all-time highs\u2026 only to take their earnings and let it drop again. In any case, Bitcoin is proving its worth as institutional investment. About <\/span>this situation, NewsBTC<\/span><\/a> said:<\/span><\/p>\n These high wealth players with decades of market experience and all kinds of tactics on their side were paramount to driving prices up to $60,000 per coin. Unfortunately, the data above suggests they were also instrumental to the selloff that left retail traders with a bloody aftermath.<\/span><\/p><\/blockquote>\n Related Reading | Brazil approves Bitcoin ETF \u2013 SkyBridge files for its own<\/a><\/strong><\/em><\/p>\n The only factor left unexplored is the possibility of a Bitcoin ETF in the US. As you should know, every financial institution and their mothers applied, and some of them have already been rejected. <\/span>NewsBTC quoted Hester Pierce<\/span><\/a>, Securities and Exchange Commission (SEC) Commissioner, who said about the situation:<\/span><\/p>\n (Institutions) want access to crypto through a regulated market. It makes sense for us to consider how to do that (\u2026). We\u2019ve dug ourselves into a little bit of a hole. A lot of people are looking for a way to access the asset class. We waited a long time to approve this kind of product.<\/span><\/p><\/blockquote>\n Sadly for us, we\u2019re still waiting.<\/span><\/p>\n Last quarter, the New Jersey Pension Fund invested heavily in two Bitcoin mining giants. A small step for institutional investors, the move might represent something much bigger. There\u2019s a hunger for Bitcoin exposure at the highest levels, but just owning the asset might be too risky or inconvenient for some of those big players. And, until the US government approves the long-awaited Bitcoin ETF, miners provide a much safer target.\u00a0 Related Reading | Marathon Digital Holdings Reported A 17% Spike In Bitcoin Mining According to Coindesk: The state-managed pension ended June with $3.66 million in Riot Blockchain (NASDAQ: RIOT) and $3.39 million in Marathon Digital Holdings (NASDAQ: MARA), according to disclosure documents. New Jersey\u2019s Common Pension Fund D has $30 billion in total assets for state employees. The New Jersey Pension Fund\u2019s intent is clear, and they put their money where their mouth is. However, is there a reason that explains why they don\u2019t want to hold the asset? A legal reason, perhaps? The polemic Michael Saylor explains their rationale in this tweet:\u00a0 Many institutional investors find publicly traded Bitcoin miners to be attractive investments because they want BTC exposure but prefer to hold securities rather than property due to tax, accounting, & business considerations. So, there are several reasons besides Bitcoin’s volatility. Nevertheless, there\u2019s a hunger. RIOT price chart on Nasdaq | Source: RIOT on TradingView.com Is Bitcoin Feasible As An Institutional Investment? Bitcoin is maturing and spreading. The title phrase is the same NewsBTC used three years ago in an article that came to the conclusion that the asset wasn\u2019t ready. We said: In its current state, the market is highly speculative, with a majority of investors looking to make a quick buck. Institutional investors have seen that, and have mostly shied away from opening their wallets for the industry. These investors are looking for long-term returns, securing the trust of consumers over time rather than making a quick buck. The tables turned. The situation changed. At the present, we are in an era in which some of the more innovative institutions already invested and drove the price to insane all-time highs\u2026 only to take their earnings and let it drop again. In any case, Bitcoin is proving its worth as institutional investment. About this situation, NewsBTC said: These high wealth players with decades of market experience and all kinds of tactics on their side were paramount to driving prices up to $60,000 per coin. Unfortunately, the data above suggests they were also instrumental to the selloff that left retail traders with a bloody aftermath. Related Reading | Brazil approves Bitcoin ETF \u2013 SkyBridge files for its own What About a Bitcoin ETF? Is That In The Cards? The only factor left unexplored is the possibility of a Bitcoin ETF in the US. As you should know, every financial institution and their mothers applied, and some of them have already been rejected. NewsBTC quoted Hester Pierce, Securities and Exchange Commission (SEC) Commissioner, who said about the situation: (Institutions) want access to crypto through a regulated market. It makes sense for us to consider how to do that (\u2026). We\u2019ve dug ourselves into a little bit of a hole. A lot of people are looking for a way to access the asset class. We waited a long time to approve this kind of product. Sadly for us, we\u2019re still waiting. Featured Image by MayoFi from Pixabay – Charts by TradingView<\/p>\n","protected":false},"author":539,"featured_media":468052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[532,640,83931,14182,83928,83927,83930,14209,83929,6759],"class_list":["post-468050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin-etf","tag-bitcoin-mining","tag-hester-pierce","tag-institutional-investment","tag-marathon-digital-holdings","tag-mining-companies","tag-new-jersey-pension-fund","tag-old-money","tag-riot-blockchain","tag-securities-and-exchange-commission"],"acf":[],"yoast_head":"\nRIOT price chart on Nasdaq | Source: RIOT on TradingView.com<\/a><\/pre>\n
Is Bitcoin Feasible As An Institutional Investment?<\/span><\/h2>\n
What About a Bitcoin ETF? Is That In The Cards?<\/span><\/h2>\n
Featured Image by MayoFi<\/a> from Pixabay<\/a> - Charts by TradingView<\/a><\/pre>\n","protected":false},"excerpt":{"rendered":"