Grayscale adds $120 Mn worth BTC amid rising institutional interest

Grayscale adds $120 Mn worth BTC amid rising institutional interest

In the past few weeks, Bitcoin has witnessed certain volatility and has bounced between USD 30,000 and USD 40,000, falling below the former levels in a move that has scared many leading companies. Despite the market volatility, the study shows that many institutional players have been adding to their Bitcoin positions.

An article published by Bloqport- a crypto data aggregator suggests that Grayscale Investments- a digital asset manager at Wall Street added bitcoin worth USD 118 million to its coffers. It is worth noting that the latest investment adds to the USD 1 billion that the company had bought for its clients in the last week.

This also implies that Grayscale now has more than USD 20 billion worth of cryptocurrency under management, which is up by more than 7% in BTC terms in a month’s time.

Notably, the latest funds are being added to the Grayscale Bitcoin Trust, which holds BTC for leading authorized investors, which includes hedge funds and institutional players that need exposure to the platform.

Based on SEC filings, Grayscale issued approximately 3.5 billion shares in Grayscale Bitcoin Trust (GBTC) alone in 2020. However, the total number of Bitcoin per GBTC share for the investors has considerably reduced over the years.

Apparently, apart from GBTC, Grayscale also has seven other cryptocurrency trust holdings, including the ones for Litecoin, Ethereum, and a digital big-cap fund. The Grayscale Ethereum Trust or ETUSD pulled in nearly USD 26.3 million per week in the year 2020, whereas other single-asset focused products showcased weekly average inflows worth USD 33.6 million.

Although, it is unclear if Grayscale is the most viable medium for investors in Corporate America to allot capital into Bitcoin since there is an increase in the number of institutional service providers that can safely execute BTC. As per reliable sources, Grayscale is likely to add new funds for its institutional players to achieve exposure to altcoins.

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