Grayscale’s newly appointed CEO, Michael Sonnenshein, told Bloomberg that more and more pension and equity funds are investing in Grayscale funds. Sonnenshein he explained:
We began to see participation not only from hedge funds, which we have been observing for a long time, but also recently from other institutions, pension funds and subsidies. […] The amount of their allocations is also growing rapidly.
Grayscale was in the BTC buying frenzy last year and now holds about 3% of the total supply of the flagship cryptocurrency. Due to the growing interest of institutions, the company continues to accumulate large positions in digital assets.
Total assets under management, AUM, exceeded $ 27 billion across 10 different products. The leader remains the Grayscale Bitcoin Trust, in which AUM has over $ 23 billion. The Ethereum trust is currently valued at approximately $ 3.6 billion, while the Digital Large Cap Fund has almost $ 339 million.
01/07/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
– Grayscale (@Grayscale) January 7, 2021
36% of institutions have cryptocurrencies
Pension funds are following in the footsteps of institutional buyers who began to flock to the Bitcoin market in 2020. Survey by Fidelity Investments Last year it showed that 36% of financial institutions in the United States and Europe own cryptocurrencies or their derivatives. More than a quarter of respondents said they own Bitcoin, and 11% that they have Ethereum (ETH) in their wallets.
According to Grayscale Investments, the institutional inflow is intensifying thanks to pension and charity funds that have recently entered the market. Grayscale’s aggressive buying of BTC is probably contributing to the rapid appreciation of the digital currency’s flagship price. As the supply in circulation decreases, an already scarce asset becomes even more difficult to obtain. Sonnenshein explained:
It is a verifiable scarce asset, so when mechanisms exist to remove it from circulation, it is inherently an even rarer thing.