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Coinbase has revealed that it has had \u201can explosion of incoming capital.\u201d Its assets under custody <\/strong>currently stand at $20 billion, $14 billion of which were accumulated since April. Coinbase highlights a string of bullish events that have \u201creally unleashed\u201d a wave of institutional adoption.<\/strong><\/p>\n Coinbase\u2019s Head of Institutional Coverage, Brett Tejpaul, talked about institutional demand for bitcoin in an interview with Heidrick & Struggles International, published on Friday.<\/p>\n Tejpaul has 25 years of experience in sales and trading, with almost 17 years at Barclays, and nine years at JPMorgan. He explained that he joined Coinbase six months ago, and is now \u201cresponsible for growing the institutional adoption of cryptocurrency, across sales, trading, custody, and Prime.\u201d Prime is Coinbase\u2019s services for institutional clients, including asset managers, hedge funds, and VCs.<\/p>\n \u201cIt\u2019s a phenomenal time for crypto \u2026 Sometimes timing is everything,\u201d Tejpaul opined. \u201cWe have had an explosion of activity,\u201d he added, elaborating:<\/p>\n I joined in April this year, at that time our assets, institutional assets under custody were $6 billion, today we stand at over $20 billion, so more than a three time increase.<\/p>\n<\/blockquote>\n \u201cEarlier in the summer, we acquired an execution platform called Tagomi and it brought with us overnight, it radically transformed our ability to cater to institutional clients that want to use smart order routing and algorithmic execution, so the stat there is that our trading volumes are 20 times what they were in the beginning of the year,\u201d Tejpaul continued.<\/p>\n \u201cWe are now measuring the fresh capital coming into crypto, principally being allocated to bitcoin in the billions,\u201d he described, noting:<\/p>\n Week after week after week, we\u2019ve had an explosion of incoming capital.<\/p>\n<\/blockquote>\n Tejpaul said that Coinbase has \u201cupgraded\u201d its banking and auditing partners: JPMorgan and Deloitte. \u201cBoth of those firms went through one to two year period of due diligence to satisfy themselves that we have the right KYC, AML, and the fact that we sort of posture ourselves and act like a bank and we have opted into being regulated, and so we are a safe onramp.\u201d<\/p>\n He then highlighted recent bullish events in the crypto space, beginning with famed hedge fund manager Paul Tudor Jones, who said in May that he put about 2% of his portfolio into bitcoin. In October, Jones said that he saw much upside to bitcoin<\/a>.<\/p>\n Jones\u2019 decision \u201cwas important because it served as a calling card to other traditional macro firms, which are thinking about bitcoin as a store of value, bitcoin as a potential tail risk hedge to the portfolio,\u201d Tejpaul detailed, adding:<\/p>\n We have seen an unbelievable wave of institutions follow Paul\u2019s lead.<\/p>\n<\/blockquote>\n He also mentioned the Nasdaq-listed Microstrategy that invested $425 million<\/a> in bitcoin and made the cryptocurrency its primary Treasury reserve asset. CEO Michael Saylor has become a bitcoin bull, personally investing $240 million<\/a> in BTC<\/a>.<\/p>\n Other famed hedge fund managers who have made bullish statements about bitcoin include Bill Miller<\/a>, who said every major bank will eventually have exposure to bitcoin, and Stan Druckenmiller<\/a>, who called bitcoin an attractive store of value that could beat gold.<\/p>\n<\/p>\n Tejpaul further shared what a typical day for him is like on the podcast. \u201cBy 9:30 in the morning, I had five separate institutional clients called to invest over $100 million each.\u201d He explained that people sitting on the sideline \u201care now looking at major banks, major accounting firms, major hedge funds, major endowments, and now Paypal<\/a> getting into this space,\u201d concluding:<\/p>\n It\u2019s really unleashed a second wave of institutional adoption.<\/p>\n<\/blockquote>\n What do you think about institutional investors flooding to crypto? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post $20 Billion in Crypto Under Custody: Coinbase Sees \u2018Explosion of Capital\u2019 From Institutional Investors<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nCoinbase Has $20 Billion in Custody<\/h2>\n
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