Leading crypto-asset fund manager Grayscale just recorded a massive milestone to its Twitter. This comes as the leading cryptocurrency Bitcoin, along with Ethereum and smaller altcoins, have erupted higher in the past 24 hours. Bitcoin traded as high as $17,850 on Tuesday, nearing its all-time high price closer to $20,000.
Crypto Asset Manager Grayscale Hits $10b Milestone
Today, the U.S.-based digital asset fund manager Grayscale hit a $10 billion milestone.
This was driven by two trends: a rapid uptick in the price of Bitcoin, which is now up by approximately 60% in the past month and is up 5% in the past day alone, and a strong amount of inflows into the Grayscale products.
Grayscale has seen a strong uptick in institutional money entering its funds due to the increasing interest in the cryptocurrency as a hedge against other markets and an arbitrage opportunity, where crypto institutional players can sell their shares in the funds on secondary markets for a premium.
Institutional Money Is Entering the Space
There is a vast amount of institutional money entering the space, validating the ongoing rally that Bitcoin is seeing at the moment.
Stanley Druckenmiller, a Wall Street billionaire, last week revealed that he has a position in Bitcoin. He said the cryptocurrency may be a better investment that gold, especially in the inflationary times that we see today.
Paul Tudor Jones is another cryptocurrency bull that recently has begun to enter the space. He wrote in a May research note:
“I am not an advocate of Bitcoin ownership in isolation, but do recognize its potential in a period when we have the most unorthodox economic policies in modern history. So, we need to adapt our investment strategy. We have updated the Tudor BVI offering memoranda to disclose that we may trade Bitcoin futures for Tudor BVI. We have set the initial maximum exposure guideline for purchasing Bitcoin futures to a low single digit exposure percentage of Tudor BVI’s net assets, which seems prudent. We will review this exposure guideline regularly.”
It’s worth noting that there is also retail money entering the crypto space. For one, Square reported $1.6 billion in Bitcoin sales over Q3 of 2020.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.