Grayscale Assets Under Management Hits $3 Billion as Bitcoin Bulls Charge On

  • Grayscale enjoying the surge in Bitcoin price
  • Institutions taking special interest in the leading cryptocurrency

Bitcoin’s rally to new 2019 highs has the stocks with exposure to Bitcoin rallying as well. Yesterday, for the first time in 18 months, BTC jumped to $13,900 level.

For the past three months, Bitcoin has been enjoying the bulls and last week it went on a tear when we smashed through $10k only to take over $11k, $12k and $13k in quick succession.

Crypto linked securities followed Bitcoin surge including DPW Holdings Inc which soared 45%, MGT Capital Investments Inc. that went up even higher, by 55%, Inc. that surged 21% and Riot Blockchain Inc., which gained 20% the same as Marathon Patent Group.

Another prominent name to this list is Grayscale Bitcoin Trust which gained 17 percent. The fund made a bigger achievement in the form of its net assets under management hitting $3 billion in value.

Grayscale Enjoying Bitcoin Surge

On May 1st, Grayscale reported surpassing $1 billion in assets under management that came on the back of Bitcoin moving up, starting this bull rally. Then in mid-June, it crossed $2 billion mark.

Bitcoin Bull and Fundstrat’s Tom Lee talked about this a few days back. Theoretically as BTC price climbs up, Lee said GBTC price, which has been constantly at a premium of 40 percent, will rise in value as well.

Just recently, crypto_goat_ shared:

“BTC big move might be coming.. GBTC is trading at a 40% premium right now. Big money coming in!”

Institutions' Taking Interest in Crypto, More to Come

While congratulating Grayscale on this achievement, Lee said that he is a “fan” of the company's approach to space.

He also advised those investors buying ETNs in the secondary market to not pay 50 percent more than NAV (holdings per share) for the Ethereum and Ethereum Classic funds.

While talking about the importance of allocating just 2 percent of Bitcoin to one’s portfolio, that can provide with an overall return of 400bp, Lee recommended using Grayscale Bitcoin Fund, for those who want to avoid using wallets.

Institutional investors along with family offices and accredited investors account for more than half of Grayscale investment. Moreover, such a huge premium is evident that institutions are taking a special interest in Bitcoin.

This is only going to get bigger as has been revealed by the research of Fidelity Digital Assets last month that suggested institutional investments is likely to increase over the next five years.

As Lee emphasizes, crypto winter is over despite Bitcoin price making a pullback to below $12,000. We are now entering crypto summer which is going to take us to a new all-time high and institutions are indeed taking an active part in this.

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