The CEO of New York Digital Investment Group (NYDIG). Robert Gutmann, has revealed that sovereign wealth funds are making inquiring about investing in the flagship cryptocurrency bitcoin.
According to Cointelegraph, Gutmann’s words came during a conversation with former goldman Sachs executive and Real Vision founder Raoul Pal in a podcast. Gutmann said that NYDIG has been having conversations with sovereign wealth funds about BTC investments.
Pal confirmed Gutmann’s revelation and stated that Singapore’s sovereign wealth fund, Temasek, has already been buying the flagship cryptocurrency, specifically focusing on newly minted coins coming directly from miners.
Temasek, it’s worth noting, has over SGD $306 billion (US $226.6 billion) in assets under management. Pal called the entry of sovereign wealth funds into the cryptocurrency space an incoming “wall of money.” Over the last few months, various organizations have been buying bitcoin.
These include Ruffer Investment, MassMutual, MicroStrategy, Tesla, and other publicly-traded companies. MicroStrategy and Tesla specifically have allocated over $1 billion to buy BTC, and both are seemingly in the green on their investments.
Gutmann drew parallels between the appeal of bitcoin for public firms and sovereign wealth funds, pointing out that institutional investors are looking to hedge their dollar-denominated liabilities. Some of the organizations that have been buying up BTC have cited its use as a hedge against inflation and potential currency debasement as a motive.
Raoul Pal, it’s worth noting, has made several bullish cryptocurrency price predictions. Earlier this year, Pal said he believes the price of Ethereum could go to $20,000 “this cycle” based on Metcalfe’s Law.
Similarly, the former Goldman Sachs executive predicted the price of bitcoin could hit $1 million this bull cycle if the cryptocurrency goes parabolic as it has in previous bull cycles, which preceded significant price drops.
Featured image via Pixabay.