PIMCO Asset Manager Plans to Invest in Crypto

PIMCO, a leading fixed income manager with approximately US $2.2 trillion in assets under management (AUM) as of December 31, 2020, is planning to increase its investment in cryptocurrencies.

PIMCO Asset Manager with US $2.2 trillion AUM plans to invest more in cryptocurrencies.

PIMCO, a leading fixed income manager with approximately US $2.2 trillion in assets under management (AUM) as of December 31, 2020, is planning to increase its investment in cryptocurrencies.

This leading asset manager had earlier made investments in crypto-linked securities. However, this time they are planning to invest directly in cryptocurrencies like Bitcoin and others to increase exposure to digital assets. 

Daniel Ivascyn, the chief investment officer of PIMCO, has said during an interview with CNBC that as part of their "trend-following strategies or quant-oriented strategies", his firm wants to increase exposure to the digital asset class gradually. He went on to explain:

"This will be a gradual process where we spend a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing."

PIMCO, founded in 1971, is one of the largest asset managers in the world. It focuses mainly on active fixed-income securities. This news, along with the flattering debut of the first Bitcoin Futures ETF in the US, ProShares’ Bitcoin Strategy exchange-traded fund (BITO), has helped the spot market price of bitcoin BTC rise to an all-time high near US $67,000. 

In fact, the price of Ether (ETH) has also increased to a whopping US $4,100. This is the first time ETH reached this level since May 2021. The market capitalization of the global cryptocurrency market has also reached a new record high at US $2.63 trillion. 

Reports say that the mainstreaming of cryptocurrencies has already started with the increased investment from institutional investors. A recent survey (done in September 2021) by the Nickel Digital Asset Management (European investment manager) has revealed that around 62% of the institutional investors across the globe who didn’t invest in cryptos earlier have planned to make their first investment in cryptocurrencies in the next 12 months. Chainalysis data shows that the 706% jump in cryptocurrency transactions in Asia over the last year is mainly because of institutional capital.