Bitcoin and cryptocurrencies have been around for more than a decade. Despite the relatively long period, the technology has been around, the adoption metrics are wanting. Crypto proponents have been peddling the idea that the only thing that is missing in the crypto adoption equation is the involvement of institutional investors or colloquially referred to as smart money.
You can think of this as Wall Street investors. These are high net worth individuals and institutional investors. For a long time, this particular group of investors has shied away from investing their money into crypto mainly due to a lack of protections and a general lack of investment vehicles.
The tide has, however, been changing for the better over the last few years as we have seen more smart money come into the crypto markets. Today, a new investment vehicle has been launched.
Bitfury is one of the oldest crypto mining companies involved in both hardware manufacturing and artificial intelligence. The company has launched a program that will enable accredited and large institutional investors the chance to invest in bitcoin indirectly by investing in the infrastructure that mines the flagship crypto.
The company made the announcement today, allowing any individual or institution – especially family offices – across the globe to invest in the hardware businesses of the company based in Iceland, Norway, Georgia, and Canada.
In an email response to Forbes, Bitfury CEO Valery Vavilov said that this new product will provide large investors a means to overcome their bitcoin investment challenges. Large investors generally avoid buying and selling their assets on spot markets because large orders can easily affect the price of an asset. This limits the vehicles of investment at the disposal of these individuals and institutions. There is also the factor of security to consider given that such investors have large amounts of assets and without appropriate security provisions in place, investment outcomes could be disastrous.
“While this offering is attractive to different types of accredited investors, we believe one of the groups that will benefit most from this offering is family offices,” Vavilov told Forbes. “Our streamlined avenue to diversification is designed specifically for their portfolios – exposure to digital assets without any of the operational/technical requirements of holding the digital assets/infrastructure themselves.”