Wall Street Owns Almost $1 Billion In Bitcoin
Publicly traded companies in the US are clearly hedging their best when it comes to the outcome of the US election. Even though Democratic candidate Joe Biden may be leading, some of them are not so sure that Republican Donald Trump is knocked out for the possibility of a second term. And if there is one thing that Wall Street dislikes, then it is uncertainty.
This is possibly one of the main reasons why so many publicly traded companies have started investing in Bitcoin. The famous crypto coin has become an immensely popular investment good in the US in 2020. As the Federal Reserve resorts to printing money indefinitely, the value of the dollar is weakening whereas classic financial analysists have all understood that there is a certainty built into Satoshi Nakamoto’s blockchain, which takes away this possibility. There are 21 million Bitcoins to be mined and that is it. No more after that.
Bitcoin issued by central banks? Not quite. But central banks in different countries are exploring their own digital currencies. Here’s what you need to know. #WSJWhatsNow pic.twitter.com/LMXazU1vQ1— The Wall Street Journal (@WSJ) October 21, 2020
Even the Wall Street Journal got into the trend with a piece on CBDC’s this week, just as Fed Chairman Powell had also floated the idea last week.
Square and Paypal
Latest example in the long row of publicly traded companies in the US that has shown an interest in all things crypto is PayPal. The payment provider announced this week that it would start working as a crypto purchasing and selling platform as from next year. It seems that Jack Dorsey’s Square investment of a few weeks ago was indeed a sign to get many others going into the direction of crypto as well.
It is only one in a long line of Wall Street companies showing interest. The amount of funds currently invested into Bitcoin by publicly traded companies by now is almost $1 billion.
The brightest star in that line if of course the group Coin Citadel, who in December of 2015 already decided to buy Bitcoins. Compared to their profit, the 20% that Square has so far made on it’s investment looks like peanuts. Galaxy Digital Holdings has the best returns based on volume.
We wonder how much that $ 877,542,400 will become if the best known crypto goes on a even bigger run.