Institutional inflows in Bitcoin (BTC) continue to grow at a faster rate. Just two days after banking giant State Street announced<\/a> its crypto services, another $40+ billion asset manager GoldenTree has announced its investment in the world\u2019s largest cryptocurrency.<\/p>\n

As a result, the Bitcoin (BTC) price is up 5% today shooting all the way to $42,000. At press time, Bitcoin is trading at a price of $41,932 with a market cap of $787 billion. This also comes amid strong Bitcoin outflows<\/a> and rising network activity on the Bitcoin blockchain.<\/p>\n

Steven Tananbaum, the chief investment officer at GoldenTree said that this is certainly a big move for the credit-focused company. As first reported<\/a> by\u00a0The Street,\u00a0<\/em><\/p>\n

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The New York-based firm has been adding Bitcoin to its balance sheet as a diversifier for the broad mix of debt-focused strategies it has run for years, according to two sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business dealings.<\/p>\n<\/blockquote>\n
With big players continuing with their accumulation, the Bitcoin community has kept its hopes alive amid the recent BTC price volatility and consolidation.<\/p>\n
The Rising Institutional Interest for Bitcoin<\/h3>\n
The regulatory environment is maturing and thus institutions are hopeful that Bitcoin is here to stay. Moreover, looking at the current global macros, inflation is taking a tall in the post-Covid pandemic recovery.<\/p>\n
Thus, institutional players are looking for asset classes that can deliver returns beating inflation. Looking at the way Bitcoin and other cryptocurrencies have performed, this remains a smart fit. Bitcoin (BTC) has managed to deliver over 200% compounded returns over the last decade.<\/p>\n
However, the percentage of institutional exposure into the crypto asset class is let for now. Like institutions just put 1-5% of their extra cash into Bitcoin or other digital assets.<\/p>\n
Business intelligence firm MicroStrategy has been massive accumulating BTC over the last year and holds more than 100K Bitcoins on its balance sheet. During its Q2 2021 results announcement<\/a>, it noted that its will continue with the Bitcoin strategy.<\/p>\n
Furthermore, Germany has introduced<\/a> a law that allows institutional players to invest up to 20% of their assets in digital currencies. This law is coming into effect starting August 2 next week. Thus, we can expect more such announcements in the coming week.<\/p>\n