Grayscale CEO Says He Is Bullish on Bitcoin

Key Takeaways

  • Grayscale’s CEO has stated that his firm’s Bitcoin fund (GBTC) is attracting big investments from major institutions.
  • Since the beginning of November, Grayscale’s Bitcoin Trust (GBTC) has grown by $5 billion
  • Grayscale’s Bitcoin fund is just one of many options for investors.

Grayscale CEO Michael Sonnenshein told CNBC today that his firm is witnessing six times the inflow that it saw last year, coming from some the largest institutional investors in the world.

Inflow Increased Six-Fold

Sonnenshein said that “Grayscale’s flows are probably up 6x of what they were last year” and added that “the types of investors putting capital to work are some of the world’s largest investors, making bigger allocations than ever.” He also said that timeframe for these allocations is in the “medium to long term.”

Since the beginning of November, Grayscale’s Bitcoin Trust (GBTC) has grown by $5 billion. In Q4 2020, GBTC added 115,236 BTC, about 48% of which was added in the last week of Bitcoin’s dip. The fund currently manages at least $12 billion of Bitcoin for its customers.

Grayscale’s Crypto Shares

Grayscale’s Bitcoin shares are registered with the US Securities and Exchange Commission. This adds certain conditions to the investment. Investors who purchase those shares can include them in their 401(k) to get tax benefits, but the shares are locked for six months before investors can sell them on the market.

Many institutions have goals and intentions that bias their investments towards arbitrage trading rather than Bitcoin as an asset. As such, Grayscale’s Bitcoin fund is just one of many options.

Nevertheless, large allocations near all-time highs with a six-month lock-up imply continued bullish expectations for Bitcoin. Grayscale’s asset management firm holds close to 570,000 Bitcoin, accounting for 3% of cryptocurrency’s entire circulating supply.

At the time of writing this author held Bitcoin and less than $15 of altcoins.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article