- The total count of assets under the Coinbase’s custody has reached about $20B, out of which $14B were accumulated from April.
- Coinbase has confirmed the explosion of capital from the institutional investors.
Brett Tejpaul, Head of Institutional Coverage, in an interview with Heidrick & Struggles International, discussed the institutional demand for cryptocurrencies. The total count of crypto assets under the Coinbase’s custody has reached about $20B, out of which $14B were accumulated from April.
An explosion of incoming capital
He said that this is the best time for crypto assets, as Coinbase has confirmed the explosion of capital from the institutional investors. During his time of joining the total assets under their custody were about $6B. Today they have $20B, which is three times as before. Tagomi, an execution platform has literally transformed their ability to cater to institutional clients. Those clients wish to use smart order routing and algorithmic executions. So the volume of trade shows that they are 20 times ahead of the one at the start of 2020.
He continued that Coinbase has upgraded in both banking and audit partners. The company has already started to count the latest incoming amount for BTC in Billions. The company’s credibility has increased by JPM Chase being a banking partner and Deloitte being an auditor. He also highlighted the bullish run in the crypto world and added Paul Tudor Jones’s words, who said that he’d put 2% of his earnings in BTC. He agreed that on following Paul’s words, they have seen an unbelievable wave of institutions.
Paul’s decision was fruitful as it became a calling card to other macro firms. They think BTC is a store of value, it is also a tail risk hedge to the portfolio. Michael Sayalor is called a BTC bull, as he invested $240M personally in Bitcoins.
It is said that Nasdaq-listed Microstrategy has invested about $425M in BTC and has already made it a primary reserve asset. Bill Miller, a hedge fund manager, said that now the majority of the banks will have the exposure to BTC. Another hedge fund manager, Stan Druckenmiller, compared Bitcoin to gold and said it is the best attractive store of value.