Asset manager PIMCO ($2.2 trillion) plans to buy more crypto

Institutional asset managers are adopting cryptocurrencies more slowly than retail traders, but their adoption is also suddenly starting to grow rapidly.


Growing Acceptance

PIMCO plans to increase its exposure to cryptos such as Bitcoin. It has delved into the asset class through crypto-linked futures. This proves that large institutions are also starting to embrace crypto.

In an interview with CNBC on Wednesday, the CIO named Daniel Ivascyn confirmed that PIMCO already has exposure to crypto-linked securities through various hedge fund wallets. He said the company plans to gradually increase its exposure as part of its “trend following strategies”. He laid further the following:

“This will be a gradual process with many internal discussions with investors. We are taking small steps in an area that is growing rapidly.”

Founded in 1971, PIMCO is one of the world’s largest asset managers. The company’s assets under management totaled $2.2 trillion as of December 31, 2020.


Institutional investors are very interested in crypto

The news from PIMCO came out yesterday as the Bitcoin price set a new ATH and Ethereum broke the USD 4,100 level for the first time since May. As a result, the total cryptocurrency market cap reached a new all-time high of over $2.63 trillion.

Major institutional investors are increasingly investing in cryptocurrencies, reflecting the growing widespread adoption of digital assets. A survey by European investment manager Nickel Digital Asset Management found that nearly two-thirds of global institutional investors with no crypto exposure planned to make their first investments within 12 months. Meanwhile, institutional capital was the main driver behind the 706% increase in crypto transactions in Asia over the past year, according to data from Chainalysis.

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