- Michael Sonnenshein succeeded Barry Silbert as the new CEO of Grayscale earlier this week.
- Cryptocurrency’s growing price is a definite factor in attracting new investors.
- Grayscale’s Bitcoin Trust currently holds more than $23 billion in assets under management (AUM), making BTC the currently popular digital currency for investments.
Major Institutional Investments in Cryptocurrencies
Grayscale is an established investment vehicle, and the company currently owns 3% of Bitcoin under circulation. In the last year, institutional buyers from the pension as well as endowment funds were permitted to invest in Bitcoin. Ever since then, Grayscale has seen immense growth in the allocation of money in its Bitcoin Trust, over $23 billion in the fund as of now.
The new CEO of the company, Michael Sonnenshein, has been a longtime executive at Grayscale. He succeeded Barry Silbert, who will continue to be the CEO of Digital Currency Group (DCG), Grayscale’s parent company.
The total market value of investments made in Grayscale has surpassed the $27 billion mark, with fund allocation ranging across ten different products.
Bitcoin Makes New Record
Maintaining its position as the most preferred cryptocurrency, Bitcoin has witnessed a growth of 8%, which has resulted in its current valuation of $41.3K in the trade market.
BTC’s positive price growth is one of the driving factors of increasing investments in the coins. Michael Sonnenshein mentioned that this rising interest towards investing in BTC, and other cryptocurrencies, is not only restricted to the hedge fund segment, highlighting the massive size of allocations made by pensions and endowments in the recent past.
Another reason for the virtual currency’s massive popularity could be attributed to the prospective gains made within a shorter period of making investments, which is opposed to the otherwise low-yielding share market, added to negative interest rates in the economy of today.
Grayscale also holds $3.6 billion in its Ethereum Trust. Speaking about ETH’s performance, Sonnenshein added that due to removing this scarce asset from circulation, which is how ETH is verified, there is going to be an evident sparsity of the same.
In a survey conducted by Fidelity Investments, over one-quarter of financial institutions out of the 36% who own derivatives and digital assets have invested in BTC, and 11% have invested in ETH.
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