As interest in cryptocurrency continues to gain momentum, Bitcoin investment solutions provider, New York Digital Investment Group (NYDIG) said that insurance firms now hold more than $1 billion worth of Bitcoin (BTC) investment via its platform.
NYDIG revealed the numbers today as part of an announcement of its growth capital fund round that saw it raise $200 million from notable investors, including its past business partners such as MassMutual and Stone Ridge.
“Life, annuity, and property & casualty insurers now own, in aggregate, more than $1 billion of direct and indirect bitcoin exposure facilitated exclusively by NYDIG and held on NYDIG’s secure, audited, and insured institutional custody platform,” excerpt of the announcement reads.
NYDIG Promotes Bitcoin Adoption for Institutions
While most of the credit for the increased institutional interest in Bitcoin is attributed to MicroStrategy’s involvement, NYDIG has also played a major role in institutional investors’ foray into the market in the past months.
Between October 2020 and January 2021, NYDIG had helped facilitate the acquisition of more than $365 million worth of Bitcoins for a few corporate investors, including MassMutual.
In December precisely, NYDIG helped MassMutual secure Bitcoin valued at around $100 million, with the insurance firm also acquiring a $5 million minority stake in NYDIG. The Massachusetts-based U.S insurance company, has been a repeat investor in NYDIG.
At the time of the investment, NYDIG’s founder and executive chairman, Ross Stevens, revealed that there had been a growing interest in the asset class from insurance companies, adding that some firms have already invested in the cryptocurrency.
Despite speculative concerns, Bitcoin has been an impressive investment option for this class of investors, stealing the show from popular traditional assets like gold.
The world’s largest cryptocurrency has been on a remarkable run since the beginning of the year, setting a new all-time high (ATH) of above $58,400 in January and has consecutively traded above $40,000 for close to a month.
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