An Upsurge In Bitcoin Investments By Pension & Endowment Funds According To Grayscale

According to Michael Sonnenshein, the newly appointed CEO of Grayscale, investors ranging from pensions, endowments, and other institutions gravitate towards entering Bitcoin’s market.

  • 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

- Advertisement -

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. 

Get this news hand-delivered to you on Telegram. Join our Telegram for similar News and Information related to CRYPTOCURRENCY, BITCOIN, BLOCKCHAIN NEWS, and Price prediction.

How useful was this post?

Click on a thumb to rate it!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Download our App for getting faster updates at your fingertips.

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

Similar Articles



Please enter your comment!
Please enter your name here

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Our Partners