Financial institutions are entering the cryptocurrency space faster than before.
Pimco wants to start trading cryptos
Pimco, a $2 trillion investment firm, could potentially begin trading spot cryptocurrencies. This is according to the firm’s chief investment officer Daniel Ivascyn during an interview with CNBC.
The CIO said,
Now we’re looking at potentially trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side. So this will be a gradual process where we spend a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing.
Pimco is already trading securities tied to the crypto market, taking advantage of price discrepancies between different products. However, the firm has not taken a directional view on the space through these securities, to be sure.
The crypto market cap is approaching $3 trillion
The cryptocurrency market is worth nearly $3 trillion, and it is attracting more institutional investors. Bitcoin recently reached a new all-time high above $67,000 after recording a more than 30% increase in price since the start of the month.
Ivascyn said Pimco is paying attention to decentralized finance, describing it as disruptive. He added that the firm is thinking about scenarios where this could take them to ensure that they are competitively prepared to deal with what’s a rapidly changing environment that offers a pretty significant value proposition, particularly for younger generations or the new generation of the investment community.
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