Institutional investment in Bitcoin, crypto and why it’s not all good news

ambcrypto.com:

One of the biggest indicators of cryptocurrencies entering the phase of mainstream adoption was the overwhelming institutional interest over the past couple of years. Consider this – Cryptocurrency funds received capital inflows of around $9.3 billion in 2021 alone, most of which originated from institutional investments.

In September 2021, Fidelity found that around 52% of institutional investors held Bitcoin or some other cryptocurrency in their portfolio.

However, a lag between institutional investments and public announcements clearly exists, something that makes it hard to ascertain where the industry really stands. A new report by CoinMetrics has tried to analyze such trends in investment interest and adoption of crypto-assets by combing through the U.S Securities and Exchange Commission’s filings over the last decade.

This, because securities laws in the U.S mandate publicly-traded companies and other investment firms to disclose their holdings and quarterly financial results.

Surprisingly, ever since Bitcoin surfaced on an SEC filing in 2011 for the first time, the top digital asset has been mentioned in 11,510 SEC filings by 2,169 unique filing entities, according to the report. It noted,

“As more institutions and crypto companies from exchanges to Bitcoin miners receive debt and equity funding from public markets, the amount of filings mentioning crypto are increasing.”

Much of this has also been fueled by the emergence of BTC or crypto-focused funds such as Grayscale, along with crypto-focused publicly traded crypto companies. Especially those involved in mining activities.

For instance, around 40 mining companies are listed on exchanges in the U.S and Canada. Moreover, huge investments by other listed companies