28.10.2021

How much cryptocurrency do the largest institutional investors have?

$ 16 billion is the amount that BitGo has invested in digital assets to date. A day later, the Grayscale fund, which invests cryptoassets in its public trusts, reached the same indicator.

Thus, large organizations continue to actively support the trend of purchasing huge amounts of cryptocurrencies.

As a reminder, this year institutional investors flooded the cryptocurrency market. At the end of the summer, the large analytical giant MicroStrategy invested more than $ 425 million in BTC, and now MicroStrategy has more than a billion dollars in bitcoins on its balance sheet.

Moreover, other institutions and others are actively joining the company’s strategy. As we learned the day before, $ 1.5 million in BTC was invested by the Canadian financial company Mogo, whose shares are also available on NASDAQ. This means that even major players in the financial market are able to recognize the prospects for the development of Bitcoin and other blockchain assets, as well as contact them.

It is important to note that the investment for 1.5 million will most likely not end. According to a Mogo spokesman, this amount is something like a probe. In the future, the company’s management allows new investments, because the latter has 17 million free dollars in its portfolio.

Who buys Bitcoin

Here is a quote from BitGo CEO Mike Belshe who commented on the company’s action. The cue is from Decrypt.

We are seeing unprecedented interest from institutional investors as a result of the economic impact of the pandemic as well as the outstanding performance of Bitcoin.

That is, in this case, experts note an increase in the rate of the first cryptocurrency. Note that this morning BTC for the first time in its history crossed the threshold of 25 thousand dollars – and this is its absolute record. Thus, Bitcoin’s jumping over the past two weeks is equivalent to 37 percent.

The Bitcoin chart for the last 14 days looks like this.

In the case of Grayscale, the Grayscale Bitcoin Trust allows investors to trade shares of a trust that contain large pools of bitcoins, and these trusts are traded on the stock market. The company now manages $ 16 billion in digital assets, according to platform Bybt, which tracks assets managed by Grayscale.

Moreover, the trust holds a total of nearly 550,000 BTC worth $ 13.91 billion, which is about 70 percent of the total amount of bitcoins held by publicly traded companies. BitGo stores all 115 thousand bitcoins or $ 2.6 billion in WBTC. This is an ERC20 token, which is an analogue of the main cryptocurrency on the Ethereum blockchain. BitGo also acts as the primary broker for institutional investors.

We believe that the above figures confirm a serious increase in the appetite of large investors for cryptocurrencies. Lovers of blockchain assets have dreamed of the arrival of institutionalists in the industry for a long time, but now it has become a reality.

Since Bitcoin is a scarce asset with a limited maximum supply, if this trend continues, one can count on a noticeable increase in the cryptocurrency rate. Still, there are more than 18.58 million bitcoins in circulation now, and about 120 years remain to mine the remaining coins. Note that after the last coin is mined, nothing bad will happen to the first cryptocurrency.

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