The current size of the cryptocurrency market is around $ 200 billion, up from $ 18 billion at the beginning of 2017, and this proves that digital assets are getting closer to the mainstream.
New players have shown interest in the crypto space.
Part of the impressive growth in the crypto asset sector is due to institutional investors shifting their money into alternative investments, including Bitcoins and other crypto assets.
Inflationary policies of world governments, such as printing money and lowering interest rates, have forced more institutional players to seek cryptocurrency as a protection against inflation.
Numerous well-known mutual funds, such as Ark Invest and Horizon Kinetic, currently boast billions of dollars worth of crypto assets under management, indicating a significant increase in institutional interest.
For example, JP Morgan recently changed its once critical stance on digital assets, announcing plans to invest $ 20 million in a fundraising round for the Consensys blockchain consortium.
Similarly, CommerzVentures, the investment arm of Commerzbank in Germany, reported that it had invested in a digital asset security startup, Curv.
Grayscale is a leader in institutional investment. Grayscale Bitcoin Trust (GBTC) has become a leading investment vehicle for institutional players who want to profit from the potential rise in crypto prices.
Since its founding in 2014, GBTC has increased its investment holdings from $ 42.8 million to about $ 4.5 billion this year, marking an increase of about 10,000% over six years.
A few weeks ago, Grayscale Investments filed a quarterly report detailing that as of June 30 of this year, the company’s Bitcoin Trust volume had grown by more than $ 1.1 billion.
The latest report seems to suggest that every quarter Grayscale’sgrayscale’s digital assets under management (AUM), rise to new record levels. One Reddit user even commented that an investment in Grayscale bought 5,973 BTC in just five days in early August. This latest purchase now gives the company huge funds worth $ 4.6 billion.
More and more investors are turning to cryptocurrency in the face of market turbulence. The growing interest in cryptocurrency among institutional players was noted in a recent report by Fidelity Digital Assets. From November 2019 to March 2020, the company conducted a survey to better understand institutional interest and acceptance of cryptocurrencies.
Their results showed that about 80% of institutional players in Europe and the US find crypto assets attractive, prompting Fidelity Digital Assets CEO Tom Jessop to note:
These results confirm the observed trend in the market towards greater interest and acceptance of the crypt as a new class of investment instrument.
Investors around the world are increasingly seeing the need to include crypts in their portfolio, mainly due to their uncorrelation with traditional assets in times of market uncertainty.
Several prominent hedge Fund investors, such as Paul Tudor Jones, have promoted bitcoin investments, and even invested large sums in the flagship crypto asset.
Obviously, the institutional implementation of BTC and other crypto assets has already arrived, which indicates the work done by cryptocurrency advocates to create a reliable ecosystem suitable for mass adoption.