Two major players in the financial ecosystem, Victory Capital and Interactive Brokers Group, plan to enter the decentralized and cosmopolitan world of Bitcoin and cryptocurrencies, to offer exposure to their thousands of investors and clients.
Victory Capital Management, the American company specialized in investment management and Interactive Brokers Group, the Connecticut-based global automated electronic broker-dealer and market maker, says it will begin offering its clients and investors exposure to Bitcoin (BTC) and others cryptocurrencies, .
Mannik Dhillon, president of VictoryShares and Solutions, said in a release that the company is considering entering the world of cryptocurrencies and digital assets to offer “the forward-looking options” that its clients want and have been demanding with greater emphasis in recent months. Dhillon assured that Victory Capital Management has studied cryptocurrencies and considers them “a viable asset class that can be part of a well-diversified portfolio.”
For its part, Thomas Peterffy, founder and president of Interactive Brokers, said At a conference held by Piper Sandler, reported by Reuters, the company will integrate trading of various crypto assets into its brokerage services in the coming months.
The plans of both firms will serve as a bridge to connect traditional financial products and services with the innovation and technology offered by the world of digital assets, helping their clients and investors gain exposure within this growing ecosystem.
Victory Capital is an investment management firm that manages more than 157.000 million in assets, it indicates on its website.
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Victory Capital, Nasdaq and Hashdex
The investment management company partnered with Nasdaq, the second largest stock market in the United States, and hashdex, the Brazilian cryptocurrency-focused asset manager, to create and sponsor new investment vehicles that allow its investors to gain exposure to the growing cryptocurrency market.
Victory Capital plans to launch a new private fund that will track the Nasdaq Crypto Index (NCI), and will be available only to accredited investors. In addition, the firm plans to offer private investment funds that will track the cryptocurrency price index. Bitcoin (BTC) y Ethereum (ETH), the largest in the industry, on the Nasdaq.
As the release states, Victory Capital’s intention is to create new investment strategies and products that allow investors to “seek returns that align with the cryptocurrency market in a diversified manner,” while gaining exposure to a broad range of cryptocurrencies and digital assets that will grow as the market evolves and matures.
“We are actively considering other vehicles to bring these opportunities and capabilities to a broader set of investors.”, Dhillon said.
In the case of Interactive Brokers, Peterffy said that its clients are asking for new cryptocurrency services and that the company hopes to launch them by the end of the summer.
Interest in Bitcoin increases
Analysis and surveys conducted by several companies indicate that interest in Bitcoin and cryptoassets is increasing every year. Victory Capital and Interactive Brokers Group have even acknowledged that their entry into the world of cryptocurrencies is being driven by the requests and demands of their investors and clients for this new asset class.
At the beginning of May, Mastercard applied a poll in 18 countries around the world to find out the level of acceptance of Bitcoin in society, discovering that 40% of Millennials have plans to start using Bitcoin and cryptocurrencies next year. Comscore published a report with data showing that the interest of users and companies in cryptocurrencies and digital assets has doubled in Latin America since November of last year.
Over $4,1 Billion in Bitcoin Profits
More recently, the forensic analysis firm in blockchain, Chainalysis, revealed that Bitcoin's gains throughout 2020 were concentrated primarily in the United States, a nation that has seen exponential growth in the use and adoption of cryptocurrencies and in the establishment of new crypto mining farms.
Specifically, Chainalysis notes that the profits of Americans, who made investments and traded with the industry-leading cryptocurrency, amount to more than 4,1 billion dollars, tripling the profits obtained in China and Japan, which are the next countries with the highest returns on this cryptocurrency.
At the time of this writing, the price of the cryptocurrency exceeds $37.200, driven by recent news from El Salvador, the first country in the world to officially make Bitcoin legal tender.
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