Cryptocurrency

Why buy Grayscale so many Bitcoin?

Since 6 months we are in the new decade of the 21st century. Century. The 20s have come and with them unexpected challenges came first. Economic and political turbulence that characterized the first few months. In Parallel, the Halving took place in BTC, and thus a significant reduction of the new offer. A few weeks ago, made the headlines here, the round that the company is Grayscale, which, bitcoins are primarily available to institutional investors, buying up a large part of the new offer.

In this article, you will learn the background to gray scales and a thirst for Bitcoin and what impact this will have on BTC itself.

High BTC demand by Grayscale

Grayscale quarterly published a report on the Status-Quo of your Grayscale Investment Funds. The Fund aims primarily to institutional investors as clients, the ease of entry in the BTC. This showed already in the last report, the volume and thus the interest of the institutions has increased significantly.

Ray Sharif-Askary, who is in Grayscale for the topic “Investor Relations” in charge, said in a recent Interview to the increased volume and the increased demand for Bitcoin.

Sharif-Askary called here a few relevant KPIs: As Grayscale, managed in June of this year, 3.8 billion dollars in customer deposits. Compared to May 2019 (2.1 billion USD), this is a increase of 80 percent. Furthermore, Sharif-Askary said that the average weekly volume of investment increase to the current level of 30 million US dollars per week.

In this context, the question of how the increased demand of the institutions comes to BTC of course. To put it differently: What are the reasons and drivers? – Finally, BTC is the same Asset as in the year 2019.

Where does the increased demand?

Sharif-Askary presented here is clear, first, that the demand for BTC, and accordingly, the products of the Grayscale was never so high as now. They also said that 90% of the Demand institutions. Here, in turn, 44% of so-called “multi-strategy” hedge funds come from.

At the end of the day, our investors want access to digital Assets, the process is simple and straightforward. This means that you must not take care of the purchase, to the custody of the BTC.

Sharif Askary also noted that their customers invest in addition to Bitcoin, also increasingly in large-cap Altcoins. In comparison to the previous year (9%) now own 38% of all customers are more than just BTC.

At the end of the article, we can say that Covid-19 was one of the decisive factors. The Virus has underscored not only the need of the digitisation of many processes and areas of the business, but also the necessity of hard goods. With the Virus in the context of the monetary policy responses of the governments, in turn, have stressed Bitcoins property of the scarcity and the institutional interest intensified.

62 % of private CFD accounts lose money. No EU investor protection.

Do you think institutions will invest more in BTC?

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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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