Grayscale has added more to its cryptocurrency holdings, taking it to a new record amount as it tags a milestone figure.
Grayscale investments hit a record-breaking fourth quarter with a $3.3 billion inflow of cryptocurrency
Institutional investors continue to buy significant amounts of Bitcoin emphasising that cryptocurrency has become a popular hedge against the dollar as well as the new hot asset to diversify investment portfolios. As both Bitcoin and Ethereum rise in price, the sentiment and discussions around the tokens remain positive, trajecting a more bullish response towards the market from investors.
digital asset manager, the firm has boasted a tripling of its weekly inflow since the previous quarter, which saw $1.05 billion USD come in. With a weekly inflow of approximately $250.7 million USD now, the market is ripe for more opportunity.
Yesterday, Grayscale added more to its Bitcoin investment taking their total assets-under-management to over $26 billion USD worth of cryptocurrency.
— Bybt (@bybt_com) January 14, 2021
Over the course of last year, Grayscale’s investments that came in came to a total figure of over $5.7 billion USD. To put this into context, this figure is a whopping four times the cumulative inflow from 2013 to 2019. This represents a major shift in investor’s perception of Bitcoin. With asset managers taking interest in the token, there is a new sense of demand for the cryptocurrency. Over the course of last year, the narrative shifted heavily towards Bitcoin becoming a long-term store of value rather than a quick-fix volatile profit opportunity. This shift has helped Bitcoin break records in terms of price, volume, sentiment and attention in 2020 and the increases don’t seem to be slowing down. In January this year, Bitcoin price surged to $42,000 USD which is over double the record high the cryptocurrency bagged in the last bull run in 2017.
According to Grayscale’s report, nearly 93% of the new investments have come in from institutional investors. Asset managers make up the biggest chunk of this figure.