Six giants of the insurance world tread into the growing market of cryptocurrency by acquiring profit from the stocks of Grayscale Investments, the daughter organization of Digital Currency Group.
According to S&P Global Market Intelligence, six major insurance corporations procured shares of crypto investment goods floated by Grayscale Investments, the world’s largest digital currency asset manager. It is also a subsidiary of Digital Currency Group, the Bitcoin and blockchain industry giant.
Unlike retail investors, the insurance companies did not indulge in the acquisition of Bitcoins precisely but extracted profit from the stocks of Grayscale Bitcoin Trust and Grayscale Ethereum Trust.
Abiding by the age-old rule of the stock market, the shareholders got their hands on the stocks in a private placement exchange. After retaining the stocks for a while, they will trade them in the secondary market. Retail and institutional investors can then acquire the shares in the public market. CoinDesk, the daughter organization of Digital Currency Group, publishes its CoinDesk indexes which are followed by the trust to track cryptocurrency stock prices.
Grinnell-based property-casualty reinsurance company, Grinnell Mutual Reinsurance bought 18,000 shares for a whopping $968,000. On the other hand, Marietta-based Donegal Mutual Insurance cautiously embarked upon the procurement of 20,000 shares. Both these transactions took place in February.
State Mutual Insurance Co, an organization that specializes in Medicare Supplement Insurance, was the pioneer insurer to originally obtain the shares of both Bitcoin and Ethereum investment products. The Georgia-based insurance corporation got hold of 13000 shares of Bitcoin Trust and 9000 shares of Ethereum Trust. The transaction cost the company a colossal amount of $491,000 and $141,500 respectively.
The secular trends predicting the conformation to crypto acquisition have attracted Insurance firms in cryptocurrency investments. In the month of December last year, Springfield-based Massachusetts Mutual Life Insurance Co. secured $100 million of Bitcoin which was later invested in stocks in New York Digital Investment Group LLC.
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