Stone Ridge follows MicroStrategy in going big on as reveals $115 million Bitcoin investment
Stone Ridge Holdings Group is stashing 10,000 BTC with the institutional asset manager’s crypto subsidiary New York Digital Investment Group (NYDIG), which on Tuesday announced it raised an additional $115 million in Bitcoin funding. It looks like Bitcoin is winning the fight to become a safe-haven asset.
— Michael del Castillo (@DelRayMan) October 13, 2020
Asset management giant Stone Ridge confirmed that it made the significant purchase of $ 115m Bitcoin via NYDIG
NYDIG is one of a handful of companies to wield New York state’s BitLicense. It maintains a series of multi-million dollar crypto funds and offers prime brokerage and custody services to institutional clients.
As part of the preparation for the public launch, Gutmann and other NYDIG and NYDIG executives published a long analysis in February 2019, titled “Buying Bitcoin”. The article outlines the difficulties that money managers face when looking for substantial Bitcoin liquidity. Currently, the 22-page report concludes that the Bitcoin market today is dominated by retail investors and speculators.
According to the report:
“Given that agents (fund managers, trustees, and other fiduciaries) control the vast majority of the trillions of dollars of investable assets in the world, we expect material institutional purchases of Bitcoin as these agents work their way through the challenges of this burgeoning asset class.”
Last week payments giant Square invested about $50 million into Bitcoin or about 2.5% of its last reported cash on hand. Struggling business intelligence firm MicroStrategy converted a whopping $425 million of its assets into Bitcoin, and at least 20 institutional investors have filed paperwork with the SEC showing they invested in the Grayscale Bitcoin Trust (GBTC).
Michael Saylor, CEO of MicroStrategy, which purchased $425 million of BTC in August and September, responded:
“As the trillions of dollars on the balance sheets of banks, asset managers, insurance firms, endowments, & family offices begin their migration to the #Bitcoin universe, they will need firms like NYDIG to guide them. $1 billion down, more to go.”
The news comes as a new report warns that the United States Federal Reserve will need to print $5 trillion next year.
Newly launched Canadian digital asset manager 3iQ has $91.2 million in its Bitcoin Fund trading on the Toronto Stock Exchange, and institutional investor Cathie Wood, of New York-based Ark Invest, told Forbes she sees bitcoin as an “insurance policy” against inflation.
Bitcoin hit highs of $11,690 on Tuesday before returning towards $11,459 at press time, still on monthly gains of 10.5% and year-to-date returns of 60%. The short term will bring further upside, with even $17,000 coming into play should $12,000 be flipped to support.
You can see the Bitcoin price here.