$2.2 trillion asset manager Pimco plans to trade crypto really soon, informs the company’s CIO. They have a lot of big clients like central banks, wealth funds, pension funds, and more. And this makes the decision of trading crypto a very big advantage for the crypto markets. The chief investment officer of the firm said, “We’re trading from a relative value perspective.”
Pimco trading crypto
The CIO of the asset manager said in an interview with CNBC that Pimco is evaluating the idea of trading digital assets. And it makes sense seeing that Bitcoin has established a double top pattern, and we are in for another rally. The manager’s hedge fund portfolios are already into crypto, and it was just a matter of time before they got into it directly. The company is one of the largest in fixed income, and it’s a subsidiary of Allianz group.
The idea behind entering the crypto industry is the “trend following strategy” that they are implementing. This is a good idea and is very similar to the momentum strategy where people invest in places that are rising with momentum instead of looking at the fundamentals. But the company does plan to do its due diligence and take its sweet time before going all in. They also plan to talk with their investors and take baby steps because of the obvious risks invoved.
The rise in adoption
As the price of Bitcoin reaches an all-time high, we must be prepared for the kind of adoption that is about to come. Even DeFi and other things in the blockchain space have started to take off. The CIO of Pimco also said, “You have to understand decentralized finance because it will be disruptive, and it very well may disrupt our industry.” And adding that, this is why it is essential to be prepared for every scenario.
If the price of BTC touched $100k, the kind of adoption would be like never before. And we can expect more companies, firms, banks, and even countries to adopt crypto.
What are your thoughts on the report that Pimco plans to trade crypto? And do you think that as the price of BTC continues to rise, so will the adoption? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.