Input 2021.02.10 08:32 | Revision 2021.02.10 08:54
Earlier, on the 19th of last month (local time), US Treasury Secretary Janet Yellen (then the nominee) warned, “Since virtual currency is mainly used for illegal finance, it is necessary to consider ways to reduce its use and prevent money laundering.” Encouraged.
However, on the 8th, the US electric vehicle company Tesla announced to the Securities and Exchange Commission (SEC) that it had bought $1.5 billion (about 1.7 trillion won) worth of bitcoin in order to efficiently manage its funds. They also said that they could buy Tesla electric cars with Bitcoin. Elon Musk, Tesla’s CEO, who has been supporting Bitcoin for a while, has brought tremendous good news to the cryptocurrency market.
Han Dae-hoon, a researcher at SK Securities, analyzed that “Tesla, which intends to expand into a platform company (from this Tesla effect), will have in mind the use of bitcoin in the financial services field.
Experts advise to pay attention to’institutional rights’ in order to become a smart cryptocurrency investor amid this flood of information. The biggest anxiety factor in cryptocurrency is that it is a virtual risky asset. However, it is said that when the institutional rights come in one by one, the substance of the cryptocurrency is guaranteed to some extent.
An official in the financial investment industry said, “You should invest based on trends rather than short-term fluctuations.” An official in the cryptocurrency industry said, “The reason Tesla, including PayPal, JP Morgan, Goldman Sachs, entered the market, is that the existing institutions recognize cryptocurrency positively.”
A report jointly published by Jingle, a cryptocurrency information portal and Hanwha Asset Management on the 1st, also focused on the influence of institutional rights in the bitcoin market. Jaggle and Hanwha Asset Management analyzed that “Bitcoin has already established an infrastructure (base) for institutional investors, which has become the driving force for the institutional rights to enter the cryptocurrency market.”
They said, “Currently, if traditional asset managers such as Blackrock and Van Eck release bitcoin-related products, institutional investors are expected to enter faster.” “There are also funds that come up with strategies.”
The futures trading volume of Bakkt of the Chicago Merchandise Exchange (CME) and New York Stock Exchange (NYSE) parent company InterContinental Exchange (ICE), which provides bitcoin futures products to actual institutions, has been steadily increasing since its launch. In addition, the fund management assets of Fidelity Management, which provides institutional investment grade consignment services, and BitGo, a US digital asset financial service company, are also increasing. Jangle and Hanwha Asset Management said, “This shows that the inflow of funds from institutional investors continues.”