As the world continues to take notice of Bitcoin and its potential to revolutionize the world of finance, leading investors are taking steps to capitalize on this new trend.
What is Apollo's strategy?
Apolloâs strategy is to sell the idea of a diversified crypto portfolio that includes Bitcoin. In doing so, the firm will also be making a bet that institutional investors will soon be able to trade cryptocurrencies directly. Currently, the only way to trade cryptocurrencies is through the purchase of an initial coin offering (ICO) token, or by trading on a cryptocurrency exchange like Coinbase. But once the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) create regulatory guidelines for crypto exchanges, institutional investors will be able to buy and sell cryptocurrencies through a fully regulated investment vehicle. If this happens, then a diversified crypto portfolio that includes Bitcoin would be a simple way for institutional investors to make a bet on the future of cryptocurrencies.
Apollo, which didnât mention what sort of crypto assets it owns, said its partnership with Anchorage dates back to the middle of last year when the firm began thinking about how to protect its customersâ crypto holdings. Apollo subsequently became involved in Anchorageâs Series D funding round, which finished in December 2021.
Adam Eling, chief operating officer of Apolloâs digital assets team, said:
âAs we explore creative ways to apply blockchain technology across Apolloâs business, we look forward to collaborating with Anchorage for the safekeeping of client assets.â
Diogo MĂłnica, president of Anchorage Digital, a crypto firm that holds a national trust bank charter from the Office of the Comptroller of the Currency, stated:
âItâs the validation of this incessant drumbeat that [crypto] is here to stay. This is a very long-term horizon process and technology, and for the large institutions, it doesnât matter that there is volatility short term.â
Anchorage Digital is currently in talks about how it might collaborate with Apollo in the future, according to MĂłnica.
In April, Christine Moy, who used to work at JPMorgan Chase (NYSE: JPM), joined Apollo. Digital assets across the firm will be included in her digital asset strategy, and she will play a central role in decision-making concerning cryptocurrencies, blockchain, and Web3.
According to last week's FinBold report, 'the majority of institutional investors buy crypto because of its 'high potential upside,' with over 40% of the investors citing the digital assets' 'high potential upside' as the reason,' Fidelity's study found.
A different survey produced identical results, with the Bloomberg MLIV Pulse survey reporting that 56% of professional investors are still interested in crypto, despite the United States Securities and Exchange Commission (SEC) increasing its legal activities in the sector.
What is the price of Bitcoin?
The decision came at a difficult time for the crypto industry, as Bitcoin (BTC), the premier digital token, has dropped over 50% since the beginning of 2022 as investors have grown increasingly concerned about macroeconomic factors such as rising inflation, interest hikes, and foreign exchange rates.
Conclusion
If Bitcoin continues to grow in popularity and gains adoption by government institutions, then the future of this virtual currency looks bright. As the number of Bitcoin users continues to grow and more people take notice of this new investment opportunity, the price will likely continue to increase. The key to making money with Bitcoin is to buy it now while the price is still relatively low. If you have any concerns about investing in Bitcoin, remember that it can be traded easily and anonymously through a digital wallet.
