Pimco manages more than two trillion US dollars in assets, including huge bond funds. Now Pimco wants to more clearly anchor Bitcoin and Co. in its portfolio.
The initial listing of a Bitcoin ETF in the U.S. brings with it the prospect of institutional investors increasingly investing in Bitcoin in a regulated environment. Pimco, as a financial giant with a good $2 trillion behind it, is fittingly fulfilling that expectation with the successful debut of ProShares Bitcoin Strategy ETF. Because Pimco’s head of investment, Daniel Ivascyn, currently announced in a TV interview with CNBC that Bitcoin and Co. will play a much bigger role in Pimco’s strategy in the future.
This is why Pimco wants to take Bitcoin seriously.
Specifically, Ivascyn noted, some of its own funds already include crypto-based securities. But he said it is now clear that Bitcoin, other cryptocurrencies and even DeFi have the potential to partially transform the financial system. Therefore, he said, it behooves Pimco to pay more attention to these developments. He hinted that direct trading in crypto assets will play a major role in this. At the same time, Ivascyn stressed that this would require “careful” conversations with clients, and he used the term “baby steps.”
Pimco is backed by more than $2 trillion in assets, making it one of the largest investment companies in the world. Known for bond funds, Pimco is linked to Germany through Allianz. Thus, statements by Pimco are always also indicators of how conservatively minded institutional investors act.
In the interview, Ivascyn refers several times to revaluations from a risk perspective and possible misjudgements in fiat markets. Behind this is probably also the realization that inflation is no longer a spectre of fear, but reality. Accordingly, Pimco with long-term strategies can no longer avoid Bitcoin (BTC) in its portfolio, moreover, customer preferences are likely to contribute to this. US media reminds of companies such as MicroStrategy and Square, which have already shifted money reserves into Bitcoin in 2020.
Here, Pimco goes one step further through Ivascyn. That’s because he also says his company needs to be prepared for a rapidly changing financial world and accommodate the younger, new generation. He specifically mentions Decentralized Finances (DeFi) as a line of business that could give Pimco competition if it fails to build expertise and offer services there itself.
Conclusion: Bitcoin expects new investors
We dare to predict: Pimco is just the beginning of a new wave of institutional investors for Bitcoin and the crypto industry. The ProShares Bitcoin Strategy ETF, with approval from the U.S. Securities and Exchange Commission, has kicked things off. ETFs, as popular financial instruments for long-term strategies, are a regulated gateway to Bitcoin in this context. In a domino effect, they also allow Pimco and others to suggest to their clients diverse methods of adding BTC to their portfolios. Let’s remember the fall of 2020, when innovative companies such as MicroStrategy, Tesla, Square, and PayPal made their commitments to Bitcoin and drove up the price through investments. If such a wave of risk-averse large investors repeats itself, the new capital in BTC will also be reflected in a positive price development.
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