After experimenting with the investment portfolio through crypto-linked instruments, fixed-income manager PIMCO plans to boost its commitment to digital currencies such as Bitcoin (BTC), providing the latest sign that large institutions are starting to embrace the new asset class.
Chief investment officer Daniel Ivascyn revealed that PIMCO already has exposure to “crypto-linked securities” through several hedge fund portfolios in an interview with CNBC on Wednesday.
As part of its “trend-following strategies or quant-oriented strategies,” he said the business aims to progressively grow its exposure to the asset class.
PIMCO, which was founded in 1971, is a global asset management firm specialising in active fixed-income securities. As of December 31, 2020, the firm’s assets under control totalled $2.2 trillion.
Bitcoin (BTC) smashed all-time highs above $67,000 on Wednesday, and Ether (ETH) surpassed $4,100 for the first time since May.
According to CoinMarketCap, the overall cryptocurrency market capitalization set a new high of almost $2.63 trillion in the process.
For much of 2021, institutions have been pouring money into crypto investments, reflecting the rising acceptability of digital assets by the general public.
According to a September poll by European investment firm Nickel Digital Asset Management, over two-thirds of worldwide institutional investors with no cryptocurrency exposure expected to make their first investments within the next 12 months.
According to statistics from Chainalysis, institutional money was the primary driving factor behind Asia’s 706 percent increase in crypto transactions over the last year.