As institutional investment in cryptocurrency has been increasing since the Coronavirus pandemic, Grayscale now holds $7 billion in digital assets under management.
Immense Growth in Recent Months
Barry Silbert, chief executive officer of Grayscale Investments, announced on Twitter that the value of assets under management has claimed the figure of $7 billion. It shows the giant digital investment company has seen immense growth over recent months.
In its Q2 report, Grayscale announced it had assets under management worth $905.8 million which then increased to $1.05 billion at the end of Q3.
However, it was stated earlier by the company that it held Bitcoin under management worth $5 billion. The recent report on the part of Grayscale has broken all previous records as the company is holding around $7 billion in assets under management.
According to reports, Grayscale has bought 77% of all Bitcoin mined in Q3, which shows how much the investors are interested in cryptocurrency.
Recently, Silbert also revealed that Ethereum Trust has 2% of all Ethereum in circulation. It means investors are also taking interest in large-cap cryptocurrencies besides Bitcoin.
Some investment companies have exceeded Grayscale in performance. For instance, in October, the exchange-traded products have submitted an exponential increase over ETC Group and Wisdom Tree. While in comparison, Grayscale has not shown such a high performance in October. The increasing growth over ETPs’ platforms unveils an unprecedented growth in institutional investment over recent months.
Big Techs in Crypto Space
Central banks’ policies and governments’ initiatives in curbing Coronavirus have made the high-inflation situation all over the world. Here comes the role of hard cap assets such as gold and Bitcoin. According to market specialists, Bitcoin can perform better than gold due to its fixed 21 million supply. MicroStrategy added a fresh injection of millions of dollars in the purchasing of Bitcoin. Following MicroStrategy, payment company Square has also invested $50 million in cryptocurrency.
In recent developments, PayPal’s entry in the crypto space is the biggest news of the year. It will prove as a major driver in crypto adoption all across the world.