Governments are looking to buy Bitcoin, NYDIG CEO confirms
According to reports, sovereign wealth funds are looking into buying Bitcoin (BTC).
According to Robert Gutman, CEO of the New York Digital Investment Group, the company is in talks with sovereign wealth funds about possible bitcoin investments.
Gutman made the announcement when he spoke on a virtual podcast with Raoul Pal, investment strategist and founder of Real Vision.
Pal also confirmed Gutman’s revelation and said that Singapore’s sovereign wealth fund Temasek is indeed a bitcoin investor.
According to Pal, Temasek, which manages about $306 billion in assets, buys blank bitcoins from miners.
On Twitter Thursday, Pal described the impending entry of sovereign wealth funds into the bitcoin space as a wall of money.
– Raoul Pal (@RaoulGMI) 25. March 2021
Since listed companies like MicroStrategy and Tesla have started to add BTC to their balance sheets, the question is whether governments will follow suit.
Gutman drew parallels between bitcoin’s appeal to public companies and sovereign wealth funds and addressed institutional investors’ desire to hedge their dollar-denominated liabilities.
Gutman says investors are reviewing and adding to their portfolios:
If you look at the world today, it is reasonable for an investment committee or distribution committee to question whether it is the right distribution mix to have all the assets denominated in U.S. dollars while the liabilities are denominated in U.S. dollars.
In August 2020, when the first bitcoin purchase was announced, Michael Saylor, CEO of MicroStrategy, pointed to the long-term value of BTC compared to the depreciated value of cash over a longer period of time.
In early March, Russ Kesterich, portfolio manager of the BlackRock Global Distribution Fund, called gold’s status as an inflation hedge exaggerated.
Bitcoin is currently down 8% in the past 24 hours, which is likely a price change given the significant drop in bitcoin volume on exchanges. Despite the current decline, BTC still stands at 78% year-over-year.
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