- 17 October 2022
- Posted by: Cryptovalues
- Category: Companies, Cryptovalues News, World News
Institutional investors are taking a long-term view of their investments by continuing to focus on cryptocurrencies despite the current negative market.
NYDIG acronym for New York Digital Investment Group, is one of the largest companies in the United States, dealing with the provision of crypto services to large corporations, banks and institutional clients and recently raised $720 million from 59 investors for a product called Institutional Bitcoin Fund.
The company shared the information with the Securities and Exchange Commission in a document filed on Sept. 29, 2022, stating that its bitcoin balance reached an all-time high in the third quarter of 2022.
Confirming how pronounced the interest in the digital sector is, the company recently announced the hiring of two new executives, Tejas Shah and Nate Conrad, to lead the mining and payments business lines, from banking giant Goldman Sachs.
NYDIG’s fundraising is taking place with the market in “extreme fear,” but institutional investors see this current market moment as “ideal” to proceed in cryptocurrency purchases, not worrying about the volatility typical of their chosen instruments, but looking long term.
According to the 2022 annual report on global hedge funds by the large accounting firm PwC, one-third of hedge funds have invested $4.1 billion in cryptocurrencies, an 8 percent increase over 2021.
Blackrock, the world’s largest investment firm, also recently announced a private fund in bitcoin for its institutional clients.
“Our institutional clients are increasingly interested in gaining exposure to the digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets,” BlackRock executive Joseph Chalom said in August 2022.