There has been an increased interest from institutional investors in cryptocurrencies.
That’s according to the new CEO of Grayscale, Michael Sonnenshein. Michael is replacing Barry Silbert as CEO after serving as the fund’s Managing Director over the last 3 years.
Institutions, Pensions, And Endowments
While talking to Bloomberg, Michael opined that pension schemes, institutions, and other endowment schemes are joining the crypto bandwagon. He went on to note that there has also been a significant increase in the amount that these institutions are allocating for crypto investments.
Indeed, various institutions have been reported to be expanding their investment options to accommodate cryptocurrencies. That’s after years of denial and backlash between the crypto community and opposers who have long held a rather pessimistic view of the crypto industry. However, this sentiment is now changing as cryptos like Bitcoin continue to prove themselves.
Grayscale Is Huge
Grayscale is one of the largest crypto-focused investment funds in the world. The fund currently manages assets totaling a cool $27.5 billion. Over the last few months, Grayscale has been accumulating large quantities of top cryptos like Bitcoin and Ethereum, signaling a serious upswing in the number of big-money investors willing to invest in cryptos through the fund.
Grayscale’s investment model enables its clients to be exposed to cryptos through a trust arrangement as opposed to owning the cryptos themselves. To woo even more investors, Grayscale has now slashed its chargeable management fees by 0.5%, bring it to 2.5% from the previous 3%.
What Does This Mean For The Market?
Admittedly, an increase in institutional interest is big news for the crypto industry, especially at a time when the crypto bull run is at its strongest ever. Bitcoin, the top crypto in the chats, is crossing the $40k mark and posting $750 billion in market cap. The entire crypto market is now worth over a trillion dollars.
These notable developments could work to fuel an extended crypto bull run, and many fans are already convinced that fiat currencies are about to capitulate and give way for cryptos like Bitcoin to fully go mainstream.
Source: Read Full Article
Euronext Reports €249.2 Million Revenue in Q1 2021
A Global Approach To Regulating Cryptocurrencies Expected As Early As 2023, Senior Official Says
Bitcoin SV as a commodity
Play-to-earn Soccer Game MonkeyBall Launches $MBS Trading And Announces Upcoming NFT Drop
Binance still serving Russians while seeking clarity on EU crypto sanctions