Grayscale Invests in 35 Million XLM Amid Rising Institutional Interest in Stellar

by
Altcoins
Grayscale Invests in 35 Million XLM Amid Rising Institutional Interest in Stellar

Grayscale has been among the top institutions that have adopted cryptocurrencies over the past year to diversify their portfolio. In the last 30 days, Grayscale Investments hedge fund has acquired 35,855,625 XLM.

Grayscale Investment in Cryptocurrencies

The company also made purchases of 243,519 ETH, 174,939 LTC, and other altcoins in the past month. The total of  LTC coins bought by Grayscale in that month add up to 80 percent of the total Litecoin mined in January. Last month, miners created 201,600 LTC overall. 

In its latest purchase over the past 24 hours, Grayscale purchased 6,568,516 XLM worth $2,799,760. The investments put its net total crypto assets under management now at $30.4 billion.

Last year, Grayscale started with just $2 billion in assets under management and ended the year with more than $20 billion, representing a 900% increase.

In its Q4 2020 report, the company wrote that “Institutions are here,” adding that in the fourth quarter, institutions accounted for 93% of all the capital inflows during the period, or approximately $3 billion. Grayscale detailed that the average commitment among institutions is also growing at a significant pace, standing at $6.8 million, up from an average of $2.9 million in 3Q20, as they said.

The firm, which currently offers accredited investors eight single-asset investment trusts and one diversified fund, seeks ways to meet better-growing investor demand for digital assets exposure through familiar, secure, and regulated investment products.

Grayscale currently offers Horizen Trust, Grayscale’s Bitcoin Trust, Stellar Lumens Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Trust, Litecoin Trust, Zcash Trust, and the large-cap digital fund.

Institutional Interest in Stellar is Growing

Stellar set out in 2014, founded by Jed McCaleb to fill in the cracks between the crypto and the financial universe. Stellar started a series of partnerships in the fintech world from that point forward. The organizations incorporate IBM, Stripe, and Deloitte, and some other major institutions across continents.

Institutions like Grayscale have stepped up to invest in cryptocurrency. With its new development, Horizon 2.0’s release of its API server that is up and running, it is bound to receive more attention. 

The update eliminates the need to roll out the Stellar validator to interact with the blockchain. Adding to that, with Horizon 2.0, its API instrument can be activated separately instead of running a fully-fledged validator.

As the client runs a validator, they get to contribute to the decentralization of Stellar (XLM) protocol or take part in crucial referendums (on fees, inflation rates, and so on). The customer can also keep track of events in-network, explore the blockchain’s current state, and submit new transactions.

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.