Bitcoin is now valued at $40K while its market cap resides at $751.18 billion. While Bitcoin is increasing without a stop, institutional investors seem to be pouring in their money into the industry. While other coins are catching up, Bitcoin made it clear that it was untouchable as the largest cryptocurrency. Bitcoin’s price movement has reportedly lured in investors eyeing pension funds as well as endowments. Grayscale’s latest CEO shed light on the same in a recent chat with Bloomberg.
Bitcoin Investment Prevails In Several Forms
Grayscale recently revealed that it would stop trading of XRP until the platform got a better picture of the SEC lawsuit against Ripple. Albeit this blip, other assets have been garnering immense traction on the crypto platform. Grayscale’s newest CEO, Michael Sonnenshein spoke to Bloomberg about the latest institutional interest in Bitcoin. He said,
“We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions and endowments. The sizes of allocations they are making are growing rapidly as well.”
Barry Silbert recently stepped down from his post as the CEO of Grayscale Investments and Michael Sonnenshein took over as the CEO. Sonnenshein had taken over an array of roles in the past seven years at Grayscale itself. Silbert revealed that he wanted to concentrate on his other company, the Digital Currency Group.
The latest bull run brought in major inflows into the Bitcoin Trust. While 2020 was rather disastrous, Grayscale seemed to have had quite a beneficial year. Last year, Grayscale managed around $2 billion in assets, however, Sonnenshein revealed that the crypto platform currently manages over $25 billion in assets.
Elaborating on the limited supply of the king coin, Sonnenshein added,
“So there is definitely an argument to be made about Grayscale and really any other vehicle that may be removing Bitcoin from circulation and putting it into a financial product inherently increasing the scarcity of an already scarce asset. This is a verifiable scarce asset and so when there are mechanisms that are removing them from circulation, that’s inherently making it an even scarcer asset.”
Furthermore, he also pointed out that the crypto rally has surged the demand for Grayscale and the platform reportedly intends to onboard several other employees as it currently harbors only 24 individuals. Sonnenshein stated that the platform would direct its focus on advertising as well as rolling out new products.