Who are institutional investors, and why should you care?

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Institutional investments in the fund ...

Institutional investment in Grayscale fund peaks
CONTENT

  • The growth turned out to be the highest in the entire history of the fund.

  • Institutions continued to invest until the March market crash.

  • Bitcoin has not yet responded to the arrival of new players.

International consortium of news organizations, developing transparency standards.

Crypto-focused fund releases Q1 2020 digital asset investment report.

The Grayscale Investments fund, aimed at digital assets, published a report for the first quarter of 2020, according to which, in the first quarter alone, the fund collected more than $ 500 million from institutional investors, which was an absolute record in the history of the fund..

Over the past 12 months, the fund was able to attract more than $ 1 billion in investments, while more than 85% of investors turned out to be institutional.

According to the published report, investors continued to steadily invest in the fund until March 20, when not only traditional, but also cryptocurrency markets collapsed due to the negative impact of the coronavirus pandemic..

“It was a challenging start to the new decade for nearly all risky assets and currencies due to the coronavirus pandemic..

Institutional investments in the fund ...

As the virus picked up steam in March, disrupting markets and economies around the world, “prolonged volatility” was the obvious winning trade, the firm said in a report..

Institutional influx

Grayscale notes that many of the investors see digital assets as a medium to long-term investment opportunity and use such assets as the main component for investment portfolios..

Inflows of more than $ 500 million indicate that demand among institutions is reaching new peaks even in a turbulent market.

We previously reported that market demand for stablecoins increased significantly in Q1 2020 due to the global economic downturn.

However, the increase in demand was not reflected in the total daily trading volume of various cryptocurrency exchanges, but rather was a signal that many investors wanted to switch to more “stable” assets, unlike bitcoin..

Bitcoin outflow

Anthony Pompliano, co-founder of the cryptocurrency-focused hedge fund Morgan Creek Digital, said that the massive outflow of bitcoins from hodlers’ wallets will affect primarily the liquidity level of the cryptoasset itself..

In February, the largest US financial holding company JPMorgan Chase & Co. presented a report detailing the increasing hype around the world around distributed ledger technology.

What do you think? Will the influx of institutions against the backdrop of the crisis affect the price of bitcoin? Share with us with our thoughts in the comments.

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Institutional investments in the fund ...

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