Bitcoin Got a Lion Share from Last Week’s $429 Million Institutional Investment
Institutions channeled $429 million into cryptocurrency funds and products in the first week of December according to a CoinShares analysis that was reported by Reuters on Dec 7.
5.8X Expansion on Total Asset under Management
The result saw their total asset under management rose to $15 billion, a 5.8X expansion from the end of 2019.
Out of the $429 million, over $336 million were funneled to Grayscale Investment products.
From this $334.7 million were invested in Bitcoin products and Bitcoin-focused funds.
Founded in 2013, Grayscale is one of the largest crypto fund managers in the world currently managing over $12 billion in assets.
In 2020 alone, the digital asset manager has amassed over $4 billion from institutions seeking exposure to cryptocurrencies.
Crypto is Here to Stay
Accompanying this shift is the admission from investors and institutional players that cryptocurrencies are here to stay.
For this precise reason, CoinShares noted that most were keen on understanding how digital assets work.
James Butterfill, the investment strategist at CoinShares said:
“On an anecdotal level, based on our client conversations over the course of 2020, we have seen a decisive shift from inquiries of a speculative nature to those that begin with comments such as, ‘bitcoin is here to stay, please help us understand it’.”
Last week’s inflow was $19 million short of what was registered three weeks ago.
Bitcoin is backed by Heavyweights
Given its stellar performance in 2020, Bitcoin has drawn the attention of most investors. Right from retesting—and even surpassing its all-time high in some exchanges, Bitcoin is one of the top performers.
It explains why in 2020, investors have been doubling down on the store-of-value asset, sinking in over $4 billion.
Despite some analysts calling tops and expecting a correction, the Bitcoin price remains resilient above $18.5k. Since prices have been steady above $19k at the back of institutional interest and support from Wall Street’s behemoths, the probability of the Bitcoin price rallying to new 2020 highs cannot be discounted.
Institutions including Fidelity, JP Morgan, Bloomberg, and veteran billionaire hedge fund managers already back the asset as laws are being formulated to harmonize the space.
As BTCManager reported, MicroStrategy purchased an additional $50 million worth of BTC according to their Treasury Reserve Policy.
