While the entire crypto market is looking for enormous ways to encourage institutional investors to wholeheartedly participate in the cryptocurrency, there are some present data that shows that they might have found a way.
Although there is no denial in the fact that cryptocurrency remains a retail-dominated market however Grayscale, an investment firm reveals that institutional investors seem to be enhancing their exposure to the asset class more than ever. And truth be told, Hedge Funds was one of those only firms that was found to be enormously involved in the investments in the last quarter.
As far as exact facts and figures are concerned, it was revealed that Hedge funds invested almost $1 million in Grayscale products during the Q4 2018. While at the start of Q1 2019, Inflows from Hedge Fund shifted to more than $24 million which gradually resulted in an astonishing increase of more than 2,400%. Therefore, at the end of the day it can be quite clearly seen that almost 56% of all Grayscale investments are actually supported by the Hedge Funds.
Grayscale and Bitcoin
Now if observed carefully, there exists an incredibly strong connection between Bitcoin as well as Grayscale.
It is so because Grayscale pointed out the fact that out of all the clients inflows it has, almost 99% of them made their way to Bitcoin Investment Trust and not on the firms’s other products that offer exposure to major altcoins.
“Nearly all inflows in Q1 were into Grayscale Bitcoin Trust (99%). One possible explanation for this is that Bitcoin found a ‘sweet spot’ with respect to relative risk and return expectations versus other digital assets.”