Nasdaq-listed insurance firm Metromile invests $1 million in Bitcoin

• Digital insurer Metromile allocated $1 million in Bitcoin, which is currently being held by a third-party custodian.
• In the previous quarter, the firm stated that it has intentions to purchase $10 million in the leading cryptocurrency.
• Metromile says that the adoption of digital assets has been rapidly increasing, emphasizing the shift in consumer behavior. 

Digital insurance company Metromile recently disclosed that the firm had purchased $1 million in Bitcoin. In the second quarter of 2021, the company stated that it has intentions to allocate $10 million to the leading cryptocurrency. 

Metromile to accept Bitcoin payments

According to a filing from the United States Securities & Exchange Commission (SEC), Metromile stated that it had bought $1 million in Bitcoin in June. As of the last day of June, the tech firm said that it recorded a loss of $100,000 since its initial purchase and that it held roughly $900,000 in BTC.

The Bitcoin investment made up around 0.5% of funds available at the firm. Metromile’s Q2 financial report revealed that the digital insurer held $202.6 million in cash and cash equivalents.

The car insurance firm further announced that it would allow its policyholders to pay for insurance and receive payments in Bitcoin or fiat. Metromile would become the first insurance company to accept premiums and pay claims in digital assets.

The firm highlighted that cryptocurrency adoption has been increasing rapidly worldwide, which emphasizes that the decentralization of finance could shift consumer behavior and financial infrastructure. 

According to Metromile, accepting crypto payments would align with the company’s commitment to innovation and “promoting financial resilience.”

The firm’s Bitcoin is being held by a third-party custodian. Metromile has not indicated when or whether the firm would purchase additional crypto assets to facilitate insurance payouts in the leading cryptocurrency.

The CEO of the insurance company Dan Preston added that the firm wanted to give drivers more control over the way they would like to pay for insurance. 

Institutional crypto product outflows decrease

While cryptocurrency prices have been rising, total crypto investment assets under management are back at $50 billion, the highest level since May, according to CoinShares.

The number of crypto funds and investment products listed has increased to a record 37 this year, compared to the previous high in 2018 with a total of 30.

Although crypto investment products witnessed the fifth week of outflows with a total of $26 million, the magnitude of outflows has substantially decreased compared to the previous months.

Bitcoin investment products totaled $33 million last week despite the cryptocurrency reaching a swing high of over $46,000. 

Additionally, the Ethereum market share has been rapidly growing, representing 26% of crypto investment products.

 

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