Bitcoin Back In The Spotlight As Fund Managers Eye Further Investments

Bitcoin (BITCOMP) has got its upward momentum back in the last seven days, the cryptoasset rallying back to the $39,000 mark this morning amid further signs of interest from institutional investors.

Blockchain, Technology, Smart, Bitcoin, Money

The price crossed through $39,000 overnight as yet more high-profile figures from the fund management world say they may increase their exposure.

The latest big name looking in the mix is noted value investor Bill Miller, via the eponymous Miller Opportunity Trust. In a regulatory filing on Friday the trust, which has $2.25bn of assets, said it "may seek investment exposure to bitcoin indirectly by investing in the Grayscale Bitcoin Trust."

The technicals are strong too. Analysts at independent trading firm TradingShot point to bullish signals from its 50-day moving average, which can be used to analyse price trends.

The BTC/USD exchange recently closed above a previous peak, and TradingShot now expects Bitcoin to undergo “a sustainable uptrend” in February should the 50-day moving average hold strong.

Ethereum logo

Ethereum trading on CME starts this week 

Today sees the long-awaited start of trading in ethereum (ETH-X) futures on the Chicago Mercantile Exchange, a move which has already helped boost it to record-breaking prices last week.

The CME listing for ethereum futures has sparked further buying by new entrants to the market because it provides a way for sophisticated investors to hedge their risk against positions that they may be holding on the underlying asset.

As a technical tool for institutional investors, this could be a positive for those still considering an allocation to ethereum. The potential to reduce downside risk through hedging could act as an incentive to hold a long position, and thus boost institutional demand, which in turn could benefit retail investors.

Strategists are positive, with JPMorgan reportedly telling clients in a note: “The listing of ethereum futures on a regulated exchange should serve to enhance the crypto market structure by allowing investors to gain exposure to the second most important cryptocurrency as a diversifier to bitcoin, or for simply hedging existing ethereum exposures.” This was something we also touched upon in our institutional report.

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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