Institutional investment has almost become the theme of the second half of 2020, and it is not over yet. Coinbase announced that the One River Fund with USD 1.6 billion in assets under management has partnered with Coinbase to invest an "undisclosed" amount in cryptocurrencies.
Coinbase explained that in order not to affect market prices, Coinbase entered the market at different speeds in different markets, and it took five days to complete the work.
One River worked with Coinbase to make an undisclosed (amount) investment in digital assets, which is one of the largest digital asset transactions in history.
One of the conditions for institutions to enter the market is the ability to conduct large-scale transactions without affecting market prices. In the past, listed companies such as MicroStrategy chose to use Coinbase's over-the-counter trading services. In addition to trading through Coinbase, this time, One River also chose Coinbase Institutional as its custodial service provider.
Ian Malloch, Chief Operating Officer and Chief Risk Officer of One River Asset Management praised Coinbase for complying with One River's strict compliance standards.
"Coinbase provides compliance with strict operational and compliance standards."
On January 2, Coinbase Pro outflowed a large amount of BTC
Coinbase has almost become a popular choice for institutions to enter the market, so a large amount of Bitcoin flowing out of Coinbase Pro has become one of the indicators for institutional entry.
According to CryptoQuant data, on January 2, approximately 55,000 bitcoins flowed out of Coinbase Pro at a purchase price of more than $30,000. CryptoQuant CEO Ki-Young Ju released a document in which institutions are still entering the market and the boom is not over yet.
It is unclear whether One River purchased 55,000 assets on January 2 and floated them. If this is the case, based on today's closing price of $32,555, the value of the transaction is approximately $1.8 billion.
Even so, it seems that institutions will be passionate about Bitcoin in 2021.
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