The Institutional Side of Crypto Investing is Finally Growing

A recent Goldman insurance sector survey shows that insurance companies would be “interested” in investing in cryptocurrencies. It shows a cross-section of institutions are becoming more confident in crypto market.

The report showed that 11% of U.S. insurance companies surveyed expressed interest in investing in Cryptocurrencies, while a far from insignificant 2% already have.

A Finmasters article said, “an insurance company will collect money in the form of premiums, invest that money, and then pay out claims as needed at some future date.” Because they may need the money at a future date, insurance companies must manage downside exposure, making crypto interest a great sign.

Mathew McDermott, the Global Head of Digital Assets, said, “a cross-section of institutions are becoming more confident to explore investment opportunities as well as recognizing the disruptive impact of the underlying blockchain technology.”

At the same time, the Purpose Bitcoin spot ETF has had a lucrative week, with a massive cash inflow. The fund purchased 7,418 BTC from 5 trading days ago. This influx raised the fund to a new high of 43.7k BTC, up from the previous high of 42k in mid-May. It seems many Canadians are trying to take advantage of the recent correction. 

Canada is becoming prime real estate for Bitcoin-related fund activity, with the Evolve Funds Group getting the green light from the Ontario Securities Commission providing direct exposure to Bitcoin, but priced and settled in CAD or USD. The U.S, on the other, has “Zero chance” of a spot Bitcoin ETF existing before 2023, according to an SEC report.

Author: Garrett Meifert

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