Several factors like significant cryptocurrency adoption improvement have contributed to making institutional investors change their minds. The amount to invest depends on the tolerance to risk, the capacity to absorb losses, and the knowledge of cryptocurrencies.

After long-term price appreciation and widespread Bitcoin adoption, institutional investors show more interest in cryptocurrencies. Due to the pandemic, many people see them as an investment to protect themselves against inflation amid economic uncertainty.

Several factors have contributed to making institutional investors change their minds. The industry has significant adoption improvement and widespread cross-border payment, and people use Bitcoin as a store of value and a hedge against inflation.

Although the ecosystem has expanded significantly, there are still existential risks in investing in cryptocurrencies. The main reasons for that are their volatility and vulnerability to speculation.

However, an annual report by PwC and Elwood Asset Management found that half of the hedge funds worldwide are in cryptocurrencies.

Institutional Investors Show More Interest in Cryptocurrencies

For the first time this year, most institutional investors are participating carefully in the cryptocurrency market.

A growing number of leading entities have adopted cryptocurrencies and are providing services with those assets. Companies like Tesla and MicroStrategy hold Bitcoin in their treasury, while Microsoft, Overstock, and Starbucks accept cryptocurrencies as a method of payment.

Digital payment services like PayPal and Square also allow users to purchase cryptocurrencies through their platforms. Additionally, the US Office of the Comptroller of the Currency (OCC) has permitted banks to offer cryptocurrency custody services.

While Elon Musk, Michael Saylor, and Jack Dorsey openly declare their support for Bitcoin, several critics have changed their minds.

The Exposure to Cryptocurrencies Increases

MicroStrategy, Grayscale, Tesla, and Galaxy Digital Holdings have expanded their wallets to include cryptocurrencies. Besides, a considerable number of institutional investors plan to increase their exposure to those assets.

Between July 1^st and August 23^rd, MicroStrategy bought more Bitcoin (BTC), adding 3,907 BTC to its holdings. The latest purchase allowed Michael Saylor’s firm to have 108,992 BTC.

Christine Sandler, head of sales and marketing at Fidelity Digital Assets, said institutional interest in cryptocurrencies is growing.

Investment management Nickel Digital Asset Management talked about an international survey of 100 institutions. They noted that 82% of the respondents said they would increase their cryptocurrency holdings by 2023.

Furthermore, 58% of those surveyed cited long-term capital growth prospects as the main reason to increase their allocation. Thirty-eight percent said they would be more comfortable with cryptocurrencies, while thirty-four percent attributed it to the improved regulatory environment.

The Amount of Money People Should Invest in Cryptocurrencies

Experts say that newcomers thinking of entering this market must do it with caution, mainly through education.

The amount people should invest will depend on their tolerance to risk, their financial capacity to absorb losses, and their knowledge of cryptocurrencies.

Most asset managers using crypto for some customers recommend sticking to a small allocation, like 0.5-1% of the total wallet.

While the cryptocurrency industry moves very fast, no one can accurately predict what would occur in space. Many will agree that Bitcoin adoption will continue to increase.

By Alexander Salazar

The resolution of the Central Bank does not clarify which cryptocurrencies they will accept, nor does it establish their prices. The blocking of remittances from the United States would be a factor pushing the measure.

The Central Bank of Cuba recently announced that it authorized using some cryptocurrencies in commercial transactions. The resolution, signed by Marta Sabina Wilson González, president of the institution, does not clarify some essential aspects. For example, it does not specify the cryptocurrencies that people can or cannot use and the price they must consider for the transactions.

According to the latest provision of the extraordinary Official Gazette, the Central Bank of Cuba explains what it means by a virtual asset. They define it as a digital representation of value that people can trade or transfer digitally and use for payments or investments. According to the document, people also know that term as digital asset, crypto asset, cryptocurrency, virtual currency, and digital currency.

Although the Official Gazette does not specify which cryptocurrencies or tokens will be valid, it is clear that the Central Bank will accept Bitcoin (BTC) and Ether (ETH). Those are the two most recognized and valued cryptocurrencies in the market worldwide. The text does not indicate the price users should take into account when making a transaction.

Furthermore, the regulations do not state that merchants will have to accept payments in cryptocurrencies. Decree-Law 361/2018 establishes that the Cuban peso is the only legal currency in the territory of that country. For that reason, it is the only one that the citizens of the Caribbean island are obliged to adopt.

Difficulty sending and receiving US dollar remittances from abroad could have pushed such a measure. That situation began during the administration of former US President Donald Trump and escalated due to economic problems caused by the COVID-19 pandemic.

Details on the Use of Crypto Assets in Cuba

Transactions with virtual assets may take place between financial institutions, legal entities, and natural persons. However, the Central Bank of Cuba only authorizes people to conduct only some types of operations.

Virtual asset service providers can process financial, exchange and collection, or payment operations in and from the national territory. The Official Gazette says that state agencies and political and social organizations cannot use virtual assets and services operating with them.

The resolution will enter into force on September 15th, 20 days after the publication in the extraordinary Official Gazette. The document states that the Central Bank of Cuba will report on the intrinsic risks of using virtual assets without authorization.

How the Use of Bitcoin Has Evolved in Cuba

In April, the Communist Party of Cuba (PPC) announced that it would include Bitcoin in the new economic guidelines for the period from 2021 to 2026. A state official said that the Caribbean nation would study the use of cryptocurrencies in current economic conditions.

Amid the protests on the island this year, many Cubans donated cryptocurrencies to help people with health vulnerabilities. A group of volunteers from Matanzas, one of the areas most affected by the pandemic, used those assets to buy hygiene, food, and medicine items.

By Alexander Salazar

The police officers also seized luxury cars, watches, and cash. The firm promised its customers a 15% return on what they had invested.

The Federal Police of Brazil seized 591 bitcoins, equivalent to USD 27 million, during an investigation of GAS Consultoría Bitcoin. That cryptocurrency company was allegedly operating a scam or Ponzi scheme.

During Operation Kryptos, the police seized 13.8 million Brazilian reais (BRL), equivalent to USD 2.6 million. Likewise, the law enforcement officers found 100 pounds sterling, US dollars, and euros.

In addition, the Brazilian police reported that they seized 21 luxury cars, several high-value watches, and jewelry in recent days. The law enforcement agency believes that this could be the largest seizure of Bitcoin and other assets they have ever made.

Promising a 10% Return to the Investors

The company, which had no registration with the Brazilian cryptocurrency regulatory bodies, was in the Lagos Region, Rio de Janeiro. They established a network to make public offers with an investment contract, promising their customers a 10% return on the invested amount.

The operation took place in Rio de Janeiro, São Paulo, Ceará, and the Federal District, where the police arrested five people. Those people arrested included Glaidson Acácio, the owner of the Bitcoin consultancy.

Acácio and the others are facing charges for crimes of fraudulent management, issuance of securities without prior registration, criminal organization, and money laundering. If convicted by the authorities, they could go to jail for 26 years.

The police also explained that the financial transactions of the Acácio company totaled approximately USD 30 million during the last six years. Half of those operations took place in the past 12 months.

A Company Representative Asks the Investors to Be Calm

After the police arrested Acácio, the investors received audios from their representatives on WhatsApp. They asked the users to be calm and told them that they would continue working.

Acácio, through a spokesman, said that he considered that what happened would generate a commotion among all those involved. However, he asked for patience because he knew they would get through that situation.

The owner of GAS told his spokesperson to convey confidence to his customers, especially new ones.

However, the company in question does not have a website or social networks, and the phone available in the Tax Service is out of service.

Acácio Goes from Being a Waiter to a Millionaire in 7 Years

Acácio worked as a waiter in a restaurant until 2014 and accumulated a fortune of over USD 30 million 7 years later.

He lived a luxurious life in mansions with his wife but did not go public on social media.

Acácio’s lawyer considers that the arrest of the businessman was a surprise for him and those involved. Although having BRL 20 million may be an exaggeration, that does not necessarily mean that the money comes from illegal activity, he said.

There are Street Protests in Favor of the Businessman

Among those taking to the streets to protest demanding Acácio’s freedom were many GAS investors and consultants. Most of them crowded in front of the Red Globo television channel to expose the case of the alleged Ponzi scheme.

The investors said that neither Acácio nor the company had committed any crime. They argued that the firm had paid them their funds on time and even in advance while operating. Of course, the authorities must decide what will happen to those arrested.

By Alexander Salazar