The Grayscale reveals why it is buying huge amounts of Bitcoin and Cryptocurrencies
Investments in Grayscale are seeing growing interest from hedge funds and other institutional investors for their Bitcoin and cryptocurrency trusts. This is why. Business is booming for one of Wall Street's visits for Bitcoin exposure.
Hedge funds and other financial institutions they have invested $1.7 billion in Bitcoin and cryptocurrency funds from Grayscale Investment, according to an interview with Ray Sharif-Askary, director of investor relations at Grayscale. Sharif-Askary went to the Coinscrum markets podcast to discuss the high volumes of Grayscales. According to host Nisa Amolis, the crypto broker and custodian have $3,8 billion in assets under management as of June, a significant jump from the $2,1 billion in AUM in May 2019 and even the $2,2 billion in AUM. 2020 billion in AUM as of March XNUMX.
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Grayscale a HODLer to consider
Additionally, the average weekly investment in Grayscale's Bitcoin and cryptocurrency trusts has increased over 800% over the year, from $ 3.2 million per week in 2019 to nearly $ 30 million per week in 2020. Why the sudden increase in interest?. According to Sharif-Askary, 2020 has so far been the year of macro instability and unprecedented monetary stimulus, and institutions are seeking alternative hedges to weather the incipient crisis.
"This has been a record year, a record quarter for us. Honestly, we've never seen a demand like this for our products before.Sharif-Askary said in the interview. And many of the buyers have been traditional hedge funds.
Of the 90% of clients that come from institutions, 44% are multi-strategy hedge funds, while another sizeable portion comes from long/short hedge funds, the Grayscale executive said. Coinscrum markets host Nisa Amolis asked if the exposure came in the form of “401k plans,” as has been the trend since Grayscale began in 2013.
