The One River investment fund works closely with the American crypto exchange Coinbase to make large transactions in digital assets. The day before, the company made “one of the largest transactions with cryptocurrencies in history.”
Information about its size was not disclosed, however, representatives of Coinbase itself did share some details. We tell you what is significant about what is happening.
Recall that the number of large investors in cryptocurrencies is quite large. In particular, in November 2020, it was known about seven companies that managed to invest tens and hundreds of millions of dollars in BTC. The list includes Grayscale, MicroStrategy, Square and other giants.
Through their actions, they not only set an example for other organizations with spare funds, but also improve the reputation of cryptocurrencies. After such investments, even those unfamiliar with the blockchain asset niche will understand that coins are not “fraudulent”, as critics sometimes call them.
Institutions and the cryptocurrency market
The Bitcoin purchase process took at least five days and was completed in several large trades depending on short-term market conditions. One River CIO Eric Peters commented on the incident. Here is his line, in which he shared the details of the situation. The quote is from Decrypt.
Coinbase’s institutional team has provided exactly what we need to complete this transaction discreetly.
Before this was announced, speculation was mounting about the growing institutional activity on Coinbase. Cryptanalysts noted that large volumes of bitcoins are being withdrawn from the exchange, which means that institutional players bought BTC and transferred coins to long-term storage. On January 5, Cryptoquant CEO Ki Yong Joo noted that 55,000 BTC had left the exchange on January 2.
It is likely that among these coins there is a significant proportion of One River’s funds received. At least taking into account the current statements, this would be logical.
One River recently came up with the case for cryptocurrencies in a post on its website titled “The Case for Digital Assets.” In his post, Peters put forward a long-term view that cryptocurrencies are the technology of the future. Here is a quote from him.
Owning these assets is just a pillar of the future, a pledge of the belief that everything we know about financial intermediation and its relationship to centralized politics will change in ways that we cannot yet foresee.
That is, in this case, the acquisition of cryptocurrencies can be perceived as a bet that they will be the future of finance. Accordingly, early coin buyers will find themselves in a very advantageous position. This is exactly what large funds, companies and investors are now trying to achieve, spending millions of dollars on bitcoins, ethers and other coins.
In other words, now betting on Bitcoin and altcoins can be the most profitable investment for every investor in the world, Peters is sure. He continues.
Long-term holding of these assets is in line with macro trends in technical progress and currency depreciation, which appear to be accelerating. And, of course, where all this will lead and to what riches will be determined by our collective imagination.
The One River deal was completed when Bitcoin had already managed to gain a foothold above the $ 30,000 mark. The fund’s management does not consider the cryptocurrency “overvalued” and, on the contrary, is ready to take risks and make a big investment in the future of the cryptoeconomy. So far, such decisions have given institutionalists only fabulous profits – remember at least the largest companies that now hold a huge amount of bitcoins on their balance sheets.
We believe such transactions support the theory that 2021 will be one of the largest in the cryptocurrency industry. More and more eminent investors are entering the niche, ready to invest hundreds of millions of dollars in blockchain assets, because they see them as the future of the financial sector. And this will in any case reflect on the retail investors who got involved with the coins before the rest. This means that, in general, the market prospects for the near future are positive.