6.9 C
Manchester
September 21, 2020
Image default
Bitcoin

Greyscale also buys Ethereum in addition to Bitcoin Blocksats

Grayscale, a digital asset management company, has recently attracted a lot of community interest because of its huge Bitcoin purchases. However, it turns out that this cryptocurrency fund collects not only BTC, but also Ethereum.

In Coinscrum’s latest podcast, Grayscale’s Investor Relations Director Ray Sharif-Askary revealed that in 2020, the company has acquired ETH worth $ 110 million in 2020. This represents 22% of all Grayscale cryptocurrency investments.

Grayscale diversifies its cryptocurrency wallet

This year’s Grayscale purchases account for 0.4% of Ethereum’s market capitalization in the last five months. Sharif-Askary said more than 38% of Grayscale’s current customers have more than one digital asset, a significant increase compared to only about 9% a year ago.

“This is encouraging for investors […] diversification within a class of digital currencies, as is the case for any other traditional asset class. “

Sharif-Askary said.

This year, Grayscale has already purchased Bitcoins worth USD 390 million, which corresponds to 0.2% of total market capitalization. Apparently, the company buys 1.5 times more Bitcoins than it is mined.

Grayscale Ethereum Trust has seen amazing increases

The purchase of Ethereum by Grayscale coincided with the amazing results of the Grayscale Ethereum Trust investment fund. The shares of this fund increased by almost 800% this year, and at the last market close their price was $ 210.

Over the past 24 hours, the fund has temporarily tested the price of $ 250, providing a 995% return on investment to investors who bought shares in early January.

Institutions hedge against inflation

Sharif-Askary said the last massive cryptocurrency accumulation has taken place because institutions are seeking protection against inflation caused by US monetary policy and the coronavirus pandemic.

“From a broader perspective, COVID-19, and especially its consequences for monetary policy, have really enabled Bitcoin to be seen as a store of value. […] Institutional investors occupy active long positions in digital assets through our products. They do this because they are looking for assets that are scarce and that can be used as a hedge against inflation in a world in which we have an unprecedented reprint of money. “

She also added that the company had never “seen such demand for its products” before.

Related posts

Huobi wants to fight illegal transactions – Blocksats

Aparnna Hajirnis

Will Bitcoin become “normal” for generations Y and Z?

Anupreet Kaur

Technical analysis of the Bitcoin + ETH, BHC, LTC and XRP course Blocksats

Aparnna Hajirnis

Leave a Comment