Institutional Investors Eyeing Bitcoin, Demand Shock On Horizon!



The post Institutional Investors Eyeing Bitcoin, Demand Shock On Horizon! appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

Despite unsettling market conditions, Anthony Scaramucci has not backed down from his stance on Bitcoin and cryptocurrencies in general. The founder and CEO of the financial services company SkyBridge Capital are well known for their unwavering support of BTC.

Regarding the current market activity, Scaramucci contended that “fraud combined with excessive leverage” was to blame for the significant selloff earlier this year. The dip, he continued, “triggered a technical overselling” of both Bitcoin and Ethereum, though (ETH-USD).

Additionally, he also cited news articles specifically about Fidelity and BlackRock to show how major money managers are facilitating crypto trading for their clients.

In a recent interview with CNBC, Scaramucci emphasized the two key variables that are fueling widespread demand for the asset class.

BTC Savings Scheme From Fidelity 

Anthony Scaramucci provided an open assessment of BTC on CNBC’s Fast Money Halftime Report in light of recent market changes. Although BTC has dropped by 64% from its record high of $69,045 that it reached in November last year, Scaramucci is still upbeat. He believes that the BTC savings retirement plan from Fidelity Investments will be crucial for the increased demand. He listed the first as “Fidelity is enabling their 401(k) to invest in BTC.”

Fidelity Investments became the first company to provide cryptocurrency for clients’ retirement savings plans in April. On April 26, the service provider announced that it will permit customers to include up to 20% of BTC in their retirement savings plans.

BlackRock’s Initiatives

The second factor that Scaramucci mentioned was BlackRock’s sudden interest in Bitcoin. In addition to working with Coinbase on their Aladdin risk management program, BlackRock announced that they would be launching a private trust that would allow their clients to make direct investments in Bitcoin.

The two recent actions by BlackRock, the biggest asset manager in the world, show the company’s interest in BTC. BlackRock’s Aladdin clients will be able to trade and store their bitcoins on Coinbase Prime, according to a Coinbase announcement made on August 4. A week later, BlackRock made the decision to introduce a private trust fund to expose BTC to its institutional American clients.

In the long run, Scaramucci thinks these actions offer an optimistic view for BTC.

At the time of reporting, BTC is at $24,075. The asset crossed over the $24,000 resistance during the most recent market upswing and is currently aiming for $25,000.