The price is down over 74 percent from its record peak near $20,000. But that has not deterred institutional investors from strengthening their bullish positions in the market. The sentiment has led the world’s largest crypto asset investment firm to notch a record capital inflow this week.
New York-based , a division of Digital Currency Group, brought in over $20 million in total investments, according to a statement issued by CEO and Founder Barry Silbert. The said uptick marked Greyscale’s best week since 2017 and pushed the firm’s assets-under-management worth to circa $1.21 billion.
BIG week for -> we raised over $20 million into the Grayscale family of funds, our highest week since 2017
— Barry Silbert (@barrysilbert)
The investment followed a shift in sentiment in the market. Upon establishing a so-called bottom towards $3,100 in December 2018, the price corrected up to 70 percent in the positive territory. It eventually settled for a new 2019 high towards $5,650 on April 23, only to correct laterwards and establish a session low towards $4,963.
Short Interest Down
Greyscale Trust (), one of the nine products offered by Greyscale, noticed a 7.79 percent decrease in Short Interest (SI). According to FINRA, GBTC’s total SI was down to 11.11 million from 12.05 million shares. Such a drop typically means that investors have become decently bullish, and the price may be due for a reversal to the upside. Nevertheless, GBTC decreased 0.70 percent during the April 26 session, much in line with the spot market’s session performance.
Greyscale Investment Trust Price Chart | Source: TradingView.com
market’s medium-term perspectives fared well. The stock surged more than 100 percent since February 6, 2019, leaving investors with a stronger bullish bias. Greyscale’s latest financial report showed that GBTC was 2,721.3 percent up since inception while it’s 12-month performance was negative, down 47.6 percent.
Greyscale’s other products also posted annual losses, with ZCash, Classic, and Cash noting more than 70 percent drop in holdings.
Only Accredited Investors
Strong asset inflows in the medium-term indicate that institutional interest in is emerging again following the 2018’s decline. Greyscale’s clientele includes hedge funds, pensions, endowments, family offices, and high net-worth individuals – and their interest in GBTC, which represents the ownership of bitcoins held by Greyscale, show a stronger bullish bias for the asset.
CRYPTO: premium to NAV creeping up to 36% on heels of surge to ~$4,000
Rise in premium is a sign of institutional net buying (easier to buy this ETN from than buy via a crypto exchange)…
…another sign 2019 way better than 2018 for crypto
— Thomas Lee (@fundstrat)
The shift came amidst institutions’ uncertainty of the market’s future. Security, lack of regulations, and of fraud were the main obstacles. But with big names in the mainstream financial industry building a crypto-enabled infrastructure, the fears are dropping down. It is already visible in ’s impressive performance in 2019.
Yale and Harvard’s endowment funds have invested in at least three venture capital funds that deal in . and have also entered the market with several partnerships and ventures.
Image Credits to Shutterstock
Published at Sat, 27 Apr 2019 11:28:02 +0000
