Grayscale now holds 2% of total Ethereum and Bitcoin in market
Grayscale Investments has disclosed that it now holds 2% of the available Ethereum, as well as 2% of the Bitcoin that is available in the marketplace. The company recently received an investment from the Rothschild Investment Corporation (RIC), and offers a range of cryptocurrency investment products to established investors. The company has around $6 billion in assets under management, and typically deals with major funds and family offices, not retail investors. It attracted a record $1.05 billion in deposits in the Q3 2020, and around $720 million of that money flowed into Bitcoin. The company plans to continue to accept new investments, and buy cryptocurrencies for its clients.
Why it matters: Mainstream investments in cryptocurrencies continues to gather strength. While Bitcoin was shunned by the mainstream investment community during its wild bull market in 2017, more and more established investors are turning to Bitcoin and Ethereum as major central banks create trillions in new money to address deep problems in the worlds' largest economies. Cryptocurrencies have the advantage of being limited in quantity, and not responding to economic factors like a downturn in economic output, which central banks address by creating money. As the global economy continues to suffer, well established tokens like Bitcoin should see strength, and wider use in the real economy.
