Bitcoin News

NYDIG could hit $25 Billion in Bitcoin under management by 2021

NYDIG could hit $25 Billion in Bitcoin under management by 2021

Founder and Chairman of the New York Digital Investment Group (NYDIG) believes that the firm could prominently expand the amount of Bitcoin it holds under management before 2021. His comments occurred during an appearance at the MicroStrategy World 2021 conference. He states that while recently, the NYDIG has $6 billion in Bitcoin AUM. This figure could reach $25 billion by the end of the year. Presently, NYDIG handles $6 Billion in Bitcoin for its 280 institutional consumers, with more than 96 more on the waiting list. 

Further, Stevens elucidated that the company can onboard over 75 clients a month. He also proclaims that he has witnessed zero clients walk back their initial investment to date. During a current appearance on The Scoop podcast, NYDIG CEO Robert Gutmann said that public companies could result in firms’ footsteps. Companies like Square and MicroStrategy are allotting some of their balance sheets to Bitcoin.

Bitcoin price rise indicates Return of Volatility

Moreover, earlier Bitcoin’s immature financial ecosystem, legal uncertainties, and extreme volatility made it unsuitable for anyone but stockholders. Nevertheless, since dropping from its initial peak observed in December 2017, the cryptocurrency’s financial infrastructure has prominently developed. A current price spike seen in 2020 has marked a return of the volatility that has drawn many investors.

The Covid-19 pandemic has made a significant impact. The initiatives by central banks and sovereign treasuries have been problematic to investors. As the Federal Reserve mints more dollars, reports of further stimulus into the US economy rise, and the menace of inflation approach. This describes why major companies with cash reserves suspect the US dollar’s long-term security and consider a hedge to develop their wealth and preserve their assets. This demonstrates the growing trend of public companies joining Bitcoin to their balance sheet. MicroStrategy commenced the trend and accompanied by Square Inc.

Follow BitcoinWorld for the latest updates.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.