As Everything Unfolds – Grayscale (Official Video)
Grayscale enjoys record growth in interest in its products
Grayscale Crypto Trusts Average Weekly Investment Increases 800%.
Grayscale Clients Diversify Into Altcoins More.
The total volume of assets under the management of Grayscale increased to $ 3.8 billion.
Grayscale notes the growing interest in its cryptocurrency trusts from hedge funds and other institutional investors. And there are certain reasons for this..
Grayscale’s total assets under management increased to $ 3.8 billion, the equivalent of a 50% increase over the past year. Moreover, the majority of purchases are made by institutional investors. However, there has been an increasing buzz from hedge funds lately as institutions warm to bitcoin as a potential hedging tool in the event of risks posed by the unprecedented stimulus policy of global central banks amid the coronavirus pandemic that has hit the global economy..
As Grayscale Investment Relations Director Ray Sharif-Askari said in a recent interview, hedge funds and other financial institutions have pumped $ 1.7 billion into the company’s cryptocurrency funds. Moreover, over the past year, the average weekly investment in Grayscale cryptocurrency trusts has increased by as much as 800% – from $ 3.2 million per week in 2019 to nearly $ 30 million this year.
Why investors are interested
Sharif-Askari notes that 2020 was marked by macroeconomic instability and unprecedented monetary stimulus measures by central banks, against the background of which institutions are eyeing alternative hedging instruments that will help them weather the looming crisis.
This is a record year – a record quarter for us. Frankly, we have never seen how high interest in our products is, and many of the buyers are traditional hedge funds..
Of the 90% of institutional clients, 44% are multi-strategy hedge funds, and another significant portion of clients are other hedge funds. At the same time, Grayscale Investor Relations Director emphasizes that tax-optimized accounts have always been and remain one of the main tools for large investors..
Our investors strive to increase their exposure to digital assets in a form that does not require them to purchase and store these assets on their own..
Over the past year, such investors have invested $ 390 million in bitcoin, while Ethereum accounted for $ 110 million. Sharif-Askari added that Grayscale clients began to diversify more into altcoins. In the portfolios of 38% of customers are not only bitcoins, but also other coins, which is 9% higher than a year ago.
She attributes this growth to the consequences of the coronavirus epidemic. After all, institutional investors are interested in acquiring scarce assets that can be used as a hedge against inflation in a world facing unprecedented stimulating monetary policy and the threat of a crisis..
Recall that recently the BeInCrypto editorial staff wrote that Grayscale is aggressively buying cryptocurrency after the May halving. Earlier this week, it was revealed that Grayscale’s Bitcoin Trust is selling ETH at a 700% premium.
In your opinion, will the growth of interest in digital assets from institutional investors continue against the backdrop of what is happening in the world? Share your opinion in the comments and join discussions in our Telegram channel!
All information, contained on our website, published on principles of good faith and objectivity, and for informational purposes only. The reader bears the full responsibility for any actions, committed by him on the basis of information, obtained from our website.