Grayscale Crypto – Explanation of the “Premiums” – GBTC, GDLC, ETHE, ETCG
The head of Grayscale told why the cryptocurrency market will continue to grow
Bitcoin will continue to grow even despite local turbulence
Monetary on the global stage will push cryptocurrency to further growth
Grayscale continues to accumulate bitcoins
The cryptocurrency market was able to maintain the fundamental foundations for further growth, the head of the largest crypto fund in the world believes
According to the head of the Grayscale cryptocurrency fund, Michael Sonnenstein, the cryptocurrency market has retained its upward potential. In an interview with finews, he named three fundamental drivers that will determine the dynamics of bitcoin.
According to Sonnenstein, the current monetary policy on the world stage worsens the position of fiduciary money, which will play into the hands of cryptocurrency. In the past year alone, the Trump administration has weakened the dollar with a $ 2 trillion helicopter money giveaway. The new US president intends to hold similar incentives.
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Also, the head of Grayscale refers to the influx of institutional money. The presence of only a small part of large companies in the face of MassMutual, MicroStrategy and PayPal have already pushed Bitcoin to absolute highs. Sonnenstein expects crypto market to take on new heights with US pension funds.
Finally, the head of Grayscale expects asset managers to enter the market who represent “huge market potential.” With PayPal entering the cryptocurrency market, other payment service providers will soon follow the e-payment giant, Sonnenstein said..
On the wave of public demand
Over the past year, the well-known cryptocurrency fund managed to attract the attention of many institutions, including Swiss ones, added the head of Grayscale.
Distribution of tokens managed by the fund. Source: bybt.com
At the time of this writing, the volume of cryptocurrency capital under the management of Grayscale has grown to $ 24.15 billion. Most of the money is concentrated in the Grayscale Bitcoin Trust, which amounts to $ 20.27 billion..
Meanwhile, in the first quarter of 2020, the fund managed assets worth $ 2.2 billion.Thus, in less than a year, Grayscale’s capital has skyrocketed almost eleven times.
The amount of BTC managed by the fund. Source: bybt.com
There are risks
The head of the world’s largest crypto fund added that institutional investors without bitcoin in their portfolio are at risk of being left behind..
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However, analysts of the large American bank JPMorgan have a different opinion. They believe that the leading cryptocurrency has recently been closely correlated with traditional assets, making it useless for hedging risks..
Bitcoin has already managed to sink below the $ 30,000 bar. Despite this drop, the cryptocurrency still has upside potential in the short and medium term. About where the bitcoin rate will move next – read the special material BeInCrypto.
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