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New York-based investment fund Tiger Global, which has about 70 billion euros in assets under management, seems to be moving slowly but surely towards crypto. Indeed, yesterday it was announced that the fund has added 2.6 million shares of COINBASE to their impressive portfolio.
Currently, those shares are worth a good 580 million euros. Which means that the fund currently has about 0.8 percent of their assets in Coinbase. Tiger Global's investment in the world's largest crypto exchange platform shows that the industry has rapidly become mainstream. More and more big names are stepping in. Indeed, Tiger Global is certainly not the only one.
Tiger Global is not the only buyer of Coinbase
However, the large Tiger Global is not the only buyer of Coinbase. US-based Intel also informed the Securities and Exchange Commission (SEC) this week that it has taken a position in Coinbase. With 3,014 shares, Intel's position in Coinbase is a lot more modest than Tiger Global's, but it shows that the industry is currently attracting attention from all corners of the world.
Many parties are still investing indirectly in bitcoin and the industry in general in this way. Since the opportunities to buy bitcoin or other cryptocurrencies directly are often not there. Due to regulations or a lack of investment products that offer the right protection. This is also an important reason why the Grayscale Bitcoin Trust is still doing so well.
In order to still get a piece of the innovation and growth that the industry is experiencing, many investors choose to put their money in companies like Coinbase. A company with a lot of potential, but also a lot of competition. The developments within the industry follow each other in rapid succession and it is difficult to predict who will be the biggest in five to ten years.
The focus of Tiger Global is mainly on growth companies
Back to the large Tiger Global that now has shares of Coinbase in their portfolio. The investment fund with a history of about twenty years is known for investing mainly in companies with great potential in the United States, India, and China. Generally, they step in relatively early investment rounds to make huge hits if a company becomes profitable.
In other words, Tiger Global's strategy is to get in early in companies with the potential to dominate a large market. In that respect, it is interesting that they now recognize crypto as an industry with a lot of potential. Something we, of course, wholeheartedly agree with.
In the past year at least, the strategy of the popular Tiger Global paid off, as the fund grew by almost 9 billion euros in 2020. So now they have shifted some of their assets towards crypto and that in itself is only good news for bitcoin and the rest of the industry.
