Cryptocurrency

Bitcoin and Ethereum, with record volume in Grayscale

While it is not happening with Bitcoin and Ethereum course, technically, the last few weeks a lot, jump on current institutional investors on the crypto train. Grayscale, one of the largest asset managers for digital Assets, today released the report for the second quarter in 2020. This was achieved not only in the Bitcoin Trust record sums of money, but also in the case of Ethereum (ETH) , Ethereum Classic (ETC) and Bitcoin Cash (BCH).

Bitcoin and Ethereum investment volume explodes in Grayscale

The new quarterly report from the Grayscale will probably surprise some. In the time of the Post-Halving Depression, where the Bitcoin exchange rate for several weeks only sideways moves and the General interest in Crypto according to Google, is like, to show institutional investors a completely different picture.

In Q2 Grayscale has generated a total investment volume of 905,8 million USD and its products. This 751,1 million USD have been invested in the Bitcoin Trust, and 135.2 million USD in the Ethereum Trust. As a reminder, last quarter the investment volume was in 503,7 million USD. This is a growth of about 80%. A total of Grayscale has been exceeded in the first half of the year, for the first Time, the magical limit of USD 1 billion.

Altcoins becoming more and more popular with investors

The majority of investments (about 84%) came from institutional investors, which are dominated by Hedge funds. In Q2 new investors came back to a total investment volume of 124.1 million USD generated. The remaining investment volume was provided by existing customers who increased their positions. Some have diversified their positions in Altcoins.

In total, investors have put in Q2, approximately 15% in the Ethereum Trust. The Ethereum Classic Trust, the Litecoin Trust and Bitcoin Cash Trust recorded a record volume of investment.

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Demand for Bitcoin exceeds the supply of new BTC

In addition, Grayscale specified in the new quarterly report that the number of BTC that has been invested in Q2 in the Bitcoin Trust, has exceeded the amount of produced BTC in the same time. Therefore, alone the demand of Grayscale in Q2 after Bitcoin has been higher than the supply of new Bitcoins.

Conclusion

This message clearly shows that the interest in Bitcoin and other digital Assets of the institutional side is always bigger. The uncertainty in the economy bring investors to search for Alternatives. Since Bitcoin is still considered to be uncorrelated to all other Assets (since the corona crisis, BTC is strongly correlated with the SP500), the benefit of institutional investors BTC to diversify your Portfolio. The demand has exploded this year and there is no reason why this should change in the future. We are still at the beginning of a long journey, and Bitcoin manages to slow to Big to penetrate.

At this point, we must not forget that the supply of Bitcoin is limited, and the quantity produced is halved every 4 years. So it is only a matter of time, if the demand remains the same or even increases, as is currently the case, that the Bitcoin rate will follow suit. We are excited to see how it goes and will keep you informed.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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