- Big money always influences the market, leading to new price rallies for assets.
- Marshall Wace, a London-based Hedge Fund, is eyeing cryptocurrencies as it makes plans to expand its portfolio.
- Carl Icahn makes a U-turn, lining up a $1.5 billion investment into cryptocurrencies in what is touted to be the biggest buy of the summer.
- As more institutional money pours into the market, experts are positive that an upward price correction is inevitable to end the year.
As with any asset or currency, the injection of large sums of money also leads to higher price growth in the crypto market. Since the launch of Bitcoin and other Altcoins, cryptocurrencies have received massive adoption around the world.
Slowly and steadily, institutional investors have poured in, especially towards the end of 2020 and the first half of this year, with J.P. Morgan, Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and other financial institutions delving into cryptos to improve their investment portfolios. The year isn’t over yet though, and the market can expect to witness more big-money investments.
Marshall Wace Gets Involved in Cryptocurrencies
London-based hedge fund Marshall Wace, worth over $55 billion, has revealed plans to start investing in cryptocurrencies and stablecoins.
2021 has seen a growing number of asset managers dip their toes into cryptocurrencies as they get over the volatility and regulation scare.
The Hedge fund plans to get into blockchain finance and cryptocurrency payment systems, and has already started the hiring process to ensure success.
Investment into DLT and crypto payment systems is certainly a good start for the hedge fund.
In other developments, Mexican billionaire Ricardo Salinas Pliego, who holds a net worth of $15.8 billion, plans on making Banco Azteca the first bank to accept Bitcoin, while planning to increase his personal Bitcoin portfolio to above 10%.
Carl Icahn’s $1.5 Billion Crypto Investment
American billionaire Carl Icahn is lining up, what many are calling, the largest crypto purchase of the summer as he makes a U-turn on his infamously negative stance towards cryptocurrencies.
Just like Mark Cuban, who invested hugely in Polygon and Elon Musk’s Tesla (NASDAQ:TSLA), going on to make a $1.5 billion bitcoin purchase earlier this year, Carl Icahn is looking to invest in crypto “in a really big way” through his company, Icahn Enterprises.
This move, which is expected to happen over the summer, may end up being the largest buy this summer. Icahn has also been motivated by Michael Saylor, whose company MicroStrategy now holds over 100,000 bitcoins after a recent purchase worth $478 million.
On the Flipside
- Government regulations may limit the effect of institutional money, potentially deeply impacting the market depending on the regulation.
- Struggling crypto prices have so far deterred institutional investors from going big in the market.
What’s Next for the Market?
The market is going bullish this summer due to the rise in investments. The $1.5 bitcoin purchase made by Elon Musk’s Tesla was one of the driving forces behind the impressive run Bitcoin made earlier this year, which also had a knock on effect on altcoins.
Bitcoin eventually soared to a record high, trading at over $64,000. Grayscale, the largest cryptocurrency asset management company in the market, has also witnessed growth in its investments.
Michael Saylor’s latest $478 million bitcoin purchase, as well as other high profile moves from investors, saved the market from negative price correction down to $17k. By the same token, news of the investments, expected to hit the market this summer, will similarly trigger a bullish run.
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