Why Grayscale is Buying More Bitcoin
In Brief
- Grayscale has added 28,413 Bitcoin to its Bitcoin Trust since the halving last month.
- Approximately 90% of Grayscale’s customers are institutional customers.
Grayscale, a leading digital asset product provider, has been making crypto headlines as it sees record-high levels of assets-under-management. Grayscale’s largest product by AUM is its Bitcoin Trust. The trust has added over 28,000 BTC since the halving last month, more Bitcoin that was mined since the event.
On a recent Coinscrum podcast, Ray Sharif-Askary (Director of Investor Relations at Grayscale) discussed Grayscale’s recent surge in demand for Grayscale products. According to a recent tweet, Grayscale now has $4.0 billion in total assets under management.
On the podcast, the host, Nisa Amolis, asked Sharif-Askary if the pandemic has influenced the demand for its products in any way. According to Sharif-Askary, monetary policy amid the pandemic has bolstered Bitcoin’s value proposition as a store of value. Furthermore, the massive amounts of monetary economic stimulus make digital assets attractive to institutional investors looking for a hedge against inflation.
What Type Of Investors Buy Grayscale Products
Sharif-Askary also provides some clarity on the type of investors purchasing Grayscale products. According to Sharif Askary, approximately 90% of Grayscale’s investment inflows have been through institutional customers. In regards to institutions specifically, hedge funds comprise a large segment. Sharif Askary noted that crypto hedge funds only account for a small part of the intuitional inflow. However, traditional hedge funds account for a large portion of the hedge funds gravitating towards Grayscale’s products.
Grayscale’s recent influx of new money is evidence of the rising institutional sentiment surrounding cryptocurrency, and more specifically, Bitcoin.
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