Warren Buffet Crypto Investment Reaches USD 1 Billion in NeoBank

Lutfi

Warren Buffet Crypto Investment Reaches USD 1 Billion in NeoBank
Warren Buffet Crypto Investment Reaches USD 1 Billion in NeoBank

Rancakmedia.com - Amazing! Warren Buffet crypto investment reaches USD 1 billion in NeoBank.
The crypto community has received some surprising news. This time, it's not just about Bitcoin price and Ethereum price.

Many people associate Warren Buffet with stock investors who are wary of investing in Bitcoin. But according to reports, he liquidated his shares and put the cash into a Bitcoin-friendly Neobank.

Warren Buffett's Berkshire Hathaway dropped some Visa and Mastercard assets and expanded exposure in Nubank, Brazil's largest fintech bank that is also popular among the country's Bitcoin investors.

In a late February 14 securities filing, the industry giant stated that it purchased $1 billion worth of Nubank Class A shares in Q4/2021. Transition from institutions finance Traditional entry into the fintech sector was marked by the sale of stakes by Visa and Mastercard for $1,8 billion and $1,3 billion respectively.

Buffett, the so-called “Oracle of Omaha,” is known for his conservative approach to investing, especially in the hottest industries like fintech. Veteran investors sometimes balk at developing decentralized financial solutions like Bitcoin (BTC), deriding them as assets that “produce nothing.” Please note that the price of Bitcoin has fallen to approximately US$40.000 or Rp. 586 million.

But Berkshire's latest position in Nubank suggests Buffett has been melting into fintech lately. In short, the company had invested $500 million in the startup in July 2021. Its return on that investment amounted to $150 million in December 2021 when Nubank launched on the New York Stock Exchange (NYSE) (NYSE).

The Warren Buffet Crypto-Bitcoin Connection

Buffett's increased investment in Nubank illustrates his understanding of a fundamental subject of the fintech industry: the digitalization of financial services, as well as his readiness to cooperate with companies active in the cryptocurrency sector.

In short, Easynvest, a trading platform that Nubank bought in September 2020 has been actively selling Bitcoin exchange-traded funds (ETFs) since June 2021. Dubbed QBTC11, this ETF is sponsored by QR Asset Management and is listed on the B3 stock market, the second oldest exchange in Indonesia . Brazil.

It appears to be Nubank, which is still exposed to the industry kripto which grew through Easynvest, was able to exploit the extra revenue potential to benefit its biggest investor, Warren Buffett, despite his belief that Bitcoin is “rat poison squared.”…

That was largely due to the expansion of related investment products crypto in 2021. Notably, their number quadrupled this year, growing from 35 to 80, according to Bloomberg Intelligence data, while the total value of the assets they hold reached $63 billion compared to $24 billion at the start of 2021.

Bank of New York Mellon Corp.'s chief financial officer Emily Portney said that if Bitcoin investment vehicles become more common, the digital asset might become a “substantial source of income” for investment banking businesses.

Meanwhile, Leah Wald, chief executive of crypto asset management Valkyrie Investments, predicted more money flowing into crypto-linked investment vehicles, saying they had become “a phenomenon that is starting to take off,” before commenting:

Even with the price drops that made Bitcoin famous, “if you look at the inflows from a volume standpoint, you see more institutions coming in,”

Conclusion

The industrial giant bought $1 billion worth of Nubank Class A shares in Q4/2021. Berkshire Hathaway dropped some Visa and Mastercard assets and expanded exposure in Brazil's largest fintech bank. The price of Bitcoin fell to around US$40.000 or Rp. 586 million.

Easynvest, a trading platform that Nubank bought in September 2020, has been actively selling Bitcoin exchange-traded funds (ETFs) since June 2021. The total value of assets they hold stands at $63 billion compared to $24 billion at the start of 2021.

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Lutfi

Hi, let me introduce myself, Lutfi Hulasoh, I am a writer and techno blogger. I started creating a personal blog writing informative articles about the latest trends and developments in technology. My writing covers a wide range of topics, from mobile applications to artificial intelligence, and I can also provide easy-to-understand explanations to help readers understand complex concepts.