Data examined by Kevin Rooke showed that Grayscale Investments has purchased nearly 19,000 Bitcoin (BTC) since Bitcoin’s halving on May 1 - but the number of Bitcoin’s mined during this time period is 12,337 BTC. Rooke also points to the recent Goldman Sachs call where analysts said that cryptocurrencies weren’t an asset class.
While Grayscale has always shown interest in Bitcoin and cryptocurrencies, buying about 6,300 more BTC than what was mined shows the enormous confidence that it must have in the asset class. Indeed, the asset management company has doubled down on its cryptocurrency bet, investing heavily in Ethereum (ETH) as well - having bought roughly 48% of all ETH mined this year.
Grayscale’s products allow investors to buy cryptocurrencies at a slight premium, with the benefit being that custody is taken care of by the firm. Bitcoin is by far the most popular asset among Grayscale’s offerings.
Owned by the Digital Currency Group (DCG), Grayscale Investment currently offers trusts for Bitcoin, Ethereum, Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), XRP, Stellar (XLM), Zcash (ZEC) and Horizen (ZEN).
Co-founder and CEO of DCG, Barry Silbert, hinted that even better figures would soon arrive,
Analysts look to these numbers to gauge the interest of institutional investors. This very much seems to be on the upward trend, as Grayscale’s own Bitcoin Trust showing a near 10 fold increase in investment from the same period in 2019. The average weekly investment in Q1 2020 stands at $29.9 million.
Grayscale has also been in the news lately for its position on Central Bank Digital Currency (CBDCs), saying that they were no replacement for Bitcoin. Other pundits have agreed with this position on the grounds that CBDCs are still tied to the pitfalls of the global economy and failing systems.