Meet the Institutional Investor Quietly Investing in Bitcoins

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Meet the Institutional Investor Quietly Investing in Bitcoins

Amidst the clamor of bitcoin trading on Wall Street and firms scratching their heads trying to figure out how to incorporate the burgeoning cryptocurrency sector into their strategies, another company is secretly leading the way.

Quietly Investing in Bitcoins

As per a report in The New York Times, the Philadelphia-based Susquehanna International Group (SIG) is quietly investing in the digital asset class. The group is one of the premier financial institutions and has billions of dollars under management spread across stocks, options, and exchange-traded funds (ETFs).

Interestingly, the group is no stranger to bitcoin trading, as reports suggest they have been operating a digital asset desk since 2015. Additionally, millions of dollars’ worth of private cryptocurrency deals have been conducted.

Notably, the firm is advancing its footprint in the sector and intends to expand its digital asset offering to over 500 clients globally.

Sussehanna trading floor

Susquehanna Trading Floor

(Source: SIG)

Bitcoin Trading Picking up Steam

The development is yet another feather in bitcoin’s disruptive cap as the once-shunned asset class is now shaking up governments, regulators, banks, and trading institutions alike. Goldman Sachs, for example, also intends to open its bitcoin trading desk soon, while the NYSE’s parent company announced plans to launch a cryptocurrency exchange.

However, Susquehanna already has skin in the game and claims to have a “lot more money” backing its trading desk. One can only speculate the potential returns the firm may have reaped since 2015, a period which saw bitcoin’s value increase by 21,900 percent.

While bitcoin’s volatility attracts traders and investors in the hopes of turning colossal profits, staunch supporters dislike the move citing that the peer-to-peer payment model is now reduced to a speculative vehicle. Bart Smith, head of cryptocurrencies at Susquehanna, explained:

“The firm believes that Bitcoin and other cryptocurrencies inspired by it are likely to have a wide array of uses, but for now, he said, Bitcoin’s best bet is to challenge gold as a scarce commodity that can be moved around more easily.”

The comments may hold true until bitcoin’s circulating supply reaches its peak in 2040 – when the last bitcoin is mined. Until then, the prices will be fully  governed by supply, demand, and public sentiment.