Pimco, with $2.2 Trillion in Assets, Move to Invest in Cryptocurrency

American investment company PIMCO, that specialises in fixed-income investments such as bonds and mutual funds, has now turned its attention towards cryptocurrency.

PIMCO manage the world’s largest bond fund and oversee $2.21 trillion in assets.

PIMCO CIO on Cryptocurrency

At the 16:30 mark of an interview on CNBC’s Delivering Alpha segment, PIMCO Chief Investment Officer Daniel Ivascyn commented:

‘Cryptos can potentially be a store of value and an inflation hedge. It’s an area of the market that is rapidly growing, and is here to stay. As a firm, we’re spending a lot of time analysing crypto, thinking about decentralized finance, and staying on top of what’s going to be a very important market.’

When the interviewer Leslie Picker asks if Pimco is putting capital to work in crypto, Ivascyn replies:

‘We’re looking at potentially trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side.’

Ivascyn also acknowledged that decentralized finance (DeFi) has the potential to disrupt the financial industry, and will be a competitor in a sense to Pimco.

‘We’re thinking about scenarios where this could take us to ensure that we are competitively prepared to deal with what’s a rapidly changing environment that offers a pretty significant value proposition, particularly for younger generations, or the new generation of the investment community.’

The Bitcoin price made a new all-time high today, breaking over $67,000, following the launch of the world’s first Bitcoin ETF, the futures-based Valkrie Bitcoin Strategy ETF.

A second futures ETF, the VanEck Bitcoin Strategy ETF, has been approved to launch next week, October 25th.

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