Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
According to a recent report, Grayscale Investments, a company that manages cryptocurrency investment funds, has once again added $300 million more in digital assets to its portfolio.
This announcement was retweeted by Barry Silbert, CEO of Grayscale Investments LLC, soon after the company made the revelation on its latest addition to its portfolio. This has increased its total amount held in its portfolio to a sum of $7.3 billion.
Added a cool $300 million in AUM in one day https://t.co/G2lKu6QqxI
— Barry Silbert (@BarrySilbert) October 22, 2020
Just recently, Grayscale Investment took a very big step to add 17000 Bitcoin to its portfolio amounting to an exchange rate value of $200 million. This took its portfolio value to about $4.8 billion amid the growing interest of institutional investors in the Bitcoin industry.
Michael Saylor, the head of MicroStrategy also revealed to have joined the other institutions to increase its Bitcoin position after spending about $500 million. FXStreet has also confirmed in addition to the involvement of Grayscale and MicroStrategy that about 90% of institutional investors plan on diversifying their portfolio in cryptocurrency. This speaks volumes on how Bitcoin is being adopted to insulate against inflation.
The Grayscale Investment Quarterly Report
Grayscale Investments also published a report on its performance in the 3rd quarter of 2020. According to the report, about $2.7 billion flowed into its products in the year under review. Also, $39.5 million flowed into its Grayscale Bitcoin Trust and $90 million into the Grayscale Ethereum Trust.
According to the report, the Grayscale Digital Large Cap recorded an amount of $1.1 million and $12.1 million into the Grayscale ex Bitcoin Trust. It was estimated that 80% of the investment came from institutional investors with most of them being hedge funds as reported by the 3rd quarterly report.
It is an undeniable fact that Bitcoin has been the major asset of the allocation of Grayscale Investments. However, there has been considerable growth in the products that hold alternative assets.
As part of the recorded performance, products that exclude Bitcoin recorded about 31% of the total inflow in the year under review. The increase in the portfolio of $300 million probably comes from the increase in demand for the Grayscale Digital Large Cap, Grayscale Litecoin Trust, and Grayscale Bitcoin Cash Trust. These saw an increased inflow of 1400% quarter-over-quarter.
The recent spike in Bitcoin interest as reported by Grayscale Investments and the addition of $300 million to its portfolio may have a positive impact on the price and spread over effect on the altcoins. As institutional investors seek to demand Bitcoin in a bid to provide a hedge against inflation, the price will benefit in the long run and also drive more institutions to come on board to increase its rate of adoption.