The largest institutional asset manager in crypto Grayscale holding 277,000 Bitcoin, worth $2.866 billion
Grayscale is the largest institutional asset management firm in crypto, offering crypto-related products through its flagship product, the Grayscale Bitcoin Trust (GBTC). And it seems that the company is holding about 277,000 Bitcoin, worth $ 2,866 billion.
What happens when Grayscale sells Bitcoin?
In addition to GBTC, Grayscale also offers other Altcoin trust products, including Ethereum, XRP, Bitcoin Cash, Litecoin, Stellar, Zcash, Ethereum Classic, and Horizen. According to the company, Ethereum and Ethereum Classic are the second and third most popular cryptocurrencies among investors’ investments.
The Grayscale Bitcoin Trust exploded in 2019 when the company said its total investment in all of its products that year reached $ 607.7 million. That figure is higher than all accumulated investments from 2013-2018. The company says institutional investors with deep pockets are driving most of its growth.
Besides, Grayscale received about 71% of the investment amount in 2019 from institutional investors. The company’s customer base is expanded by 24%, with existing customers accounting for more than 75% of capital raised. Finally, 36% of Grayscale customers currently have multiple product allocations in the Grayscale product range.
With such a massive scale and about $ 2,866 billion worth of Bitcoin in hand, once Grayscale or its major investors decide to cashout out of the cryptocurrency market, you know what will happen there!
Money in the world of crypto has arrived, and Bitcoin is already eating into gold’s market share
At the recent Crypto Financial Conference in Switzerland, Grayscale CEO Michael Sonnenshein said:
“I think one of the areas where it is going is taking market share of gold – either Bitcoin or other digital assets emerging as a store of this digital value. Perhaps gold and other things. It could be that this type of investment has a place in the portfolio when the world becomes much more materialized. And so, it’s time to start thinking about what makes a valuable digital store, and so we started looking at things like Bitcoin.”
Michael Sonnenshein, Grayscale CEO
Sonnenshein believes that Millennials and the younger generation will play an important role in accepting crypto assets.
“I think the same thing is not discussed very much, which we find is extremely important, that in the United States, in the last 25 years, we are considering about 68 trillion dollars that will be passed down from older generations, baby boomers, down to Millennials and younger generations.”
The younger generation doesn’t necessarily have the same investment preferences. If you were growing up at the time when Apple, Venmo, and Bitcoin, regularly used digital payment capabilities, you would understand the importance of digital currencies. And since being a value receiver, you will become a value transferer from one generation to the next.
In December, Charles Schwab released a report showing that the Millennials are opting to buy Grayscale’s Bitcoin Trust, which is backed by BTC, instead of shares of Microsoft, Walt Disney, Netflix or Warren Buffett’s Berkshire Hathaway.
The report also shows Millennials in particular are allocating a larger portion of their investment portfolios to cash and exchange-traded-funds (ETFs) compared to other investors.
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