Asset management firm, GoldenTree, which currently handles over $41 billion in assets under management is reportedly buying bitcoin.
According to recent reports, the firm is adding bitcoin to its balance sheet in a bid to diversify its portfolio. The move offers the firm a more broad mix of debt-focused strategies, according to sources close to the matter.
The report also states that GoldenTree is considering hiring cryptocurrency investment and operational experts in its bid to shift attention to the industry.
While no details have been shared in terms of how much bitcoin has been purchased by the firm, the firm is apparently only focused on bitcoin at the moment.
Institutional crypto investments continue to grow
The reports of GoldenTree purchasing bitcoin come at a time when asset management firms and institutional investors are seeing an increase in demand for blockchain and crypto offerings.
Most recently, Germany updated its fixed investment rules to allow institutional funds to hold up to 20% of their portfolios in crypto. The move is seen as positive for a country that has remained fairly conservative regarding the cryptocurrency industry.
Fidelity Digital Assets recently conducted a study, indicating that up to 71% of institutional investors plan to invest in digital assets in the future. While 90% of institutions interested in digital assets plan to have an allocation by 2026.
Banks also joining the fray
The growth of the crypto and blockchain industry in 2021 has also seen banks begin to take notice. Major banks such as JPMorgan have already begun to offer its client’s exposure to cryptocurrencies. The bank currently offers access to five crypto funds. Four of which are from Grayscale Investments, with the fifth from Osprey Funds.
Bank of America has also recently approved selected clients to trade bitcoin futures through the bank.
The move comes after Goldman Sachs also offered futures trading to its clients. Bank of America has also formed its own cryptocurrency research team. The bank hasn’t stopped there. It also recently took part in stable coin Paxo’s Series D funding round, which raised $540 million and includes other investors such as FTX and Coinbase Ventures.