Key Takeaways
- • Pimco Chief Investment Officer Daniel Ivascyn told CNBC on October 20, 2021, that the $2.21 trillion fixed-income manager plans to invest more in cryptocurrencies.
- • Some Pimco hedge fund portfolios already trade listed crypto macro proxies and other digital asset-linked securities, according to Ivascyn.
- • Pimco is considering trading certain cryptocurrencies within its trend-following and quant-oriented strategies, supported by fundamental research and investor diligence.
- • The comments came as the first US bitcoin ETFs launched, bitcoin briefly passed its prior all-time high of $64,899, and the total crypto market capitalization reached $2.7 trillion.
Summary
Pimco Chief Investment Officer Daniel Ivascyn said on October 20, 2021, in an interview with CNBC that the fixed-income firm, which manages $2.21 trillion in assets, is bullish on bitcoin and plans to invest more in cryptocurrencies. He said the firm is comfortable with the asset class from a diligence perspective and believes in the disruptive potential of decentralized finance, particularly for younger investors.
According to Ivascyn, some of Pimco's hedge fund portfolios already hold listed crypto macro proxies and other digital asset-linked securities. He said the firm is looking at potentially trading certain cryptocurrencies as part of its trend-following and quantitative strategies, with more fundamental analysis to follow. He described the approach as gradual, involving extensive internal diligence and discussions with investors, and said Pimco would "take baby steps in an area that's rapidly growing."
The comments coincided with the launch of the first bitcoin ETFs in the United States. Bitcoin traded just over $66,000 on the day, above its previous all-time high of $64,899. At the time, the entire digital asset ecosystem had a market capitalization of $2.7 trillion, and total value locked in decentralized finance had reached a symbolic $100 billion.
Ivascyn's remarks followed by about a week comments from BlackRock CEO Larry Fink, who said crypto represents "huge opportunities." Together, the statements reflected growing acceptance of digital assets among large institutional asset managers.
According to Ivascyn, some of Pimco's hedge fund portfolios already hold listed crypto macro proxies and other digital asset-linked securities. He said the firm is looking at potentially trading certain cryptocurrencies as part of its trend-following and quantitative strategies, with more fundamental analysis to follow. He described the approach as gradual, involving extensive internal diligence and discussions with investors, and said Pimco would "take baby steps in an area that's rapidly growing."
The comments coincided with the launch of the first bitcoin ETFs in the United States. Bitcoin traded just over $66,000 on the day, above its previous all-time high of $64,899. At the time, the entire digital asset ecosystem had a market capitalization of $2.7 trillion, and total value locked in decentralized finance had reached a symbolic $100 billion.
Ivascyn's remarks followed by about a week comments from BlackRock CEO Larry Fink, who said crypto represents "huge opportunities." Together, the statements reflected growing acceptance of digital assets among large institutional asset managers.
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