Institutional adoption and investment in cryptocurrencies continue to be on a high as large corporations continue to flock around the digital assets in the space. However, Bitcoin has seemed to be the most preferred by many investors, as the meteoric rise of the digital asset has been remarkable since the beginning of 2020. On the other hand, Ethereum has also not been short of institutional investors, as many institutional players have placed their fate on the leading altcoin, with a hope that it will supersede Bitcoin someday. However, Popular Chinese technology company- Meitu, in a press release, have announced that they have spent $90 million on the purchase of both Bitcoin and Ethereum this month alone.
The company believes that investing in Crypto is the future
Despite its recent purchase of both leading cryptocurrencies, the power holders at Meitu are still skeptical about the fortunes of both cryptocurrencies, sighting issues related to volatility. However, there is some form of optimism, as they are positively expectant of a continuous rise in the digital assets’ fortunes. In the announcement by the arm of Coinbase, which handles institutional investment of cryptocurrencies- Coinbase institutional, they have confirmed that Meitu has joined the growing list of institutional investors who have committed their funds to the digital assets.
Earlier in the month, Meitu committed a total of $40 million to buy both Bitcoin and Ethereum. The firm had now proceeded to spend another $50 million in repurchasing both cryptocurrencies last week. At the time of writing, Meitu now has Ethereum worth $50.4 million and Bitcoin worth $39.6 million in their portfolio. Speaking to the press about the new acquisition this month, Meitu believes that storing their treasury in cryptocurrencies is a decision that will bring in more yields in the future as the value of the digital assets continues to plummet. The general belief by many institutional investors who have committed money to cryptocurrencies is that they would reap quick profits off the digital assets’ plummeting value, an assertion shared by Meitu.
Coinbase Institutional continues to be the preferred choice for institutional investors
The announcement by both Meitu and Coinbase institutional have further shown the belief of institutional investors in the Coinbase conglomerate. Meitu has now joined the growing list of institutional clients the firm is helping to custody their digital assets. Many other large corporations like Microstrategy- one of the highest publicly known institutional investors of Bitcoin with more than $5 billion in their portfolio-are among the few companies who have trusted the firm to help take care of their assets.
However, while most of these large corporations who Coinbase Institutional have been helping to buy cryptocurrencies have primarily been investing in Bitcoin, Meitu takes a different turn. The Chinese-based technology firm has committed most of its cryptocurrency investment into Ethereum, a rare case considering the growth and value of Bitcoin. Fortunately, the news will delight so many investors in the Ethereum community who have been clamoring for institutional investments in the cryptocurrency.