In recent months there has been an influx of institutional investors looking for exposure to Bitcoin and other cryptocurrencies.
Union Investments, one of the largest asset management funds in Germany, wants to include Bitcoin (BTC) in its investment funds. This latest development is part of the fund’s targeted pilot program for its institutional investors.
The investment firm currently manages over $ 500 billion in assets. It told Bloomberg yesterday that it would like to add Bitcoin to a small number of mutual funds. The funds are available to private investors.
According to Union Investment, each of the funds would hold 2% of its total portfolio in Bitcoin. Portfolio manager Daniel Bathe announced that the investment products would be available in the fourth quarter of the year. However, there is no precise schedule for the start.
Numerous hedge funds and other institutional investors have entered the cryptocurrency market since early 2021. Germany in particular has become one of the leading countries in terms of institutional cryptocurrency investments.
The country’s law allowing institutions to hold cryptocurrencies went into effect on August 2nd. The law allows institutional investors, including pension funds, to hold a percentage of their portfolios in Bitcoin and other cryptocurrencies.
The cryptocurrency market has grown massively over the past year. Total market capitalization is now nearly $ 2.4 trillion, making it a current all-time high. Bitcoin continues to dominate the market with a market cap of nearly $ 1 trillion.
However, Bitcoin’s dominance in the market has waned in recent months. Bitcoin previously made up over 50% of the total market capitalization of cryptocurrencies. However, Ether and the others have eaten up Bitcoin’s market share and now make up only 41% of the total market capitalization of cryptocurrencies.
Bitcoin is currently trading above $ 52,000, up over 80% from its low of $ 29,000 in July. Ether, on the other hand, is hovering around $ 4,000 after falling below $ 2,000 two months ago.