{"id":261711,"date":"2020-05-24T13:04:52","date_gmt":"2020-05-24T17:04:52","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=261711"},"modified":"2020-06-13T13:06:51","modified_gmt":"2020-06-13T17:06:51","slug":"investment-in-grayscale-bitcoin-reaches-record-levels","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/investment-in-grayscale-bitcoin-reaches-record-levels","title":{"rendered":"Investment in Grayscale Bitcoin Reaches Record Levels"},"content":{"rendered":"
The world economies are facing challenges with both the mainstream sector and the cryptocurrency industry showing signs of weakness. However, one company particularly unfazed about the negative development is Grayscale Bitcoin Trust. Institutional investors have turned their eyes on the company and chosen to invest and have their funds managed by Grayscale. As a result, the growth levels of the firm has increased massively since the last first-quarter results were announced.<\/p>\n
A recent report revealed that the Grayscale Bitcoin<\/a> has grown ten times since the first quarter of last year. The company announced the quarterly result on Thursday, while the downturn in the world economy continues.<\/p>\n Many experts believe the arrival of institutional investors is fueling the growth. However chief executive of the company, Barry Silbert says apart from the institutional investors, other factors may have been responsible for the growth as well, albeit on a smaller scale.<\/p>\n The Bitcoin Trust Fund, which is Grayscale\u2019s Investment flagship, has been receiving an unprecedented increase in funds for the past year. According to the report on the increase, the number of investments in the first quarter of 2019 was $3.2 million, as against about $30 million for the first quarter of 2020.<\/p>\n Many have considered institutional money as the bedrock of any massive growth that will be recorded in Bitcoin and Bitcoin robot<\/a> in the coming years. That\u2019s because they usher in massive funds into the crypto space<\/a>, leading to expansive growth on an expansive scale. Several comments about the tweet on the announcement opined that the growth is a result of small-scale investors who are still learning about cryptocurrencies.<\/p>\n Nonetheless, the $30 million figure represents over 50% of all Bitcoins mined each week, since only 900 Bitcoins are mined each day presently.<\/p>\n The growth in Grayscale has been considered a massive one considering that the company was able to buy such a large scale while block rewards are still decreasing. The company also revealed on Thursday that its managed assets keep growing towards unprecedented levels, as well as the company\u2019s share of the digital asset market.<\/p>\n \u201cGrayscale\u2019s Asset Under Management (\u2018AUM\u2019) continues towards all-time highs, as does our share of the digital asset market,\u201d the announcement reads. In the first quarter of 2020, the investment into Grayscale\u2019s crypto products rose to $503.7 million, as against $1.7 billion recorded the previous 12 months. It shows that the firm\u2019s strongest quarter was the first quarter of the year.<\/p>\n The firm also said that the Q1 2020 investment figure is the highest it has ever recorded since its history. This is a massive achievement, especially this period largely ruled by market instability.<\/p>\n","protected":false},"excerpt":{"rendered":"Institutional investors fueling growth<\/h2>\n
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Grayscale\u2019s managed assets still growing<\/h2>\n