Founder and CEO of Digital Currency Group (DCG), Barry Silbert, has brought some hope for cryptocurrency investors despite the ailing market conditions. Silbert believes that the investors are still committed to the digital currency market and have been showing interest despite the ongoing bear cycle.
During the last week, the overall valuation of the cryptocurrency market has dropped by more than $50 billion and has currently slipped below $250 billion. Bitcoin, which still continues to enjoy the status of world’s largest cryptocurrency, is currently seen breaking the critical resistance of $6000. At the press time, Bitcoin is seen trading at $5950, according to the data on CoinMarketCap. Other altcoins like Ethereum, Litecoin, Bitcoin Cash, Ripple are joining Bitcoin contributing to the market woes.
However, despite all the current ailing conditions of the crypto market, the recent optimism brought by Barry Silbert holds a lot of weight as Digital currency Group (DCG) is the largest venture capital firm focused on the digital currency market. Over the last few years, DCG has emerged as one of the most popular firms in the blockchain and cryptocurrency market funding some of the billion-dollar businesses in the crypto space like world’s largest cryptocurrency exchange Coinbase, Japan’s leading bitFlyer exchange, and others.
Just at the time, when the crypto markets have undergone a huge correction in the last one week, Silbert revealed that it has been the best fundraising week of this year for GrayScale where the company managed to raise more than $20 million. Silbert said:
“Best fundraising week for 2018 for the Grayscale family of funds, over $20 million raised this week. What bear crypto market?”
DCG along with its digital currency investment arm GrayScale has emerged as the central point of contact for large-scale investment firms and other venture capital firms looking to venture into the digital currency space. DCG has its own suite of public cryptocurrency investment vehicles like the Bitcoin Investment Trust, Ethereum Investment Trust, and Ethereum Classic Investment Trust, which are currently traded even on public stock markets.
More importantly, in the past few weeks, amidst the major correction in the market, several big investment firms and retail investors from the global financial sector are seen showing considerable interest and enthusiasm in the digital currency market.
Jim Cramer from CNBC Mad Money, who has previously asked investors to remain wary regarding BTC and other crypto investments, recently said that banking institutions should now fear the growing competition from digital currencies as new and young investors are showing more interest towards this emerging asset class instead of the traditional finance market.
“Then there are the potentially existential threats that I just mentioned: blockchain, which some people believe could possibly end the banks’ hegemony over stock clearing, and cryptocurrencies, which are the populist insurgents of the blockchain movement. I’m not saying this is the right way to look at banks, but it’s certainly how younger portfolio managers view the group, and they are winning right now judging from where the group is trading.”
All in all, amid the market’s recent correction, more and more investors are attempting to enter the game, thus contributing to the newly established demand, which will likely be shown in the Q3 of 2018.