Grayscale controls more than 3% of Bitcoin, and recognizes pension interest

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The current CEO of Grayscale Investments claims that the biggest digital investment firm in the world predicts growing demand from institutional investors, like pension funds and endowments, to keep driving its explosive expansion. 

Since acquiring upwards of 3% of the overall stock of the biggest digital currency, the Grayscale Bitcoin Trust has been a leading indicator among virtual currency holders.

Michael Sonnenshein, who on Thursday was appointed founder Barry Silbert’s replacement, stated during an conversation with news outlets that, “We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions and endowments,”

“The sizes of allocations they are making are growing rapidly as well.”

Mr Sonnenshein stated Grayscale has 10 portfolios and now oversees US$25 billion in assets, up from US$2 billion a year earlier. In the wake of a surge that for the first occasion lifted Bitcoin to US$40,000 recently, the Bitcoin trust has experienced much of the inflows. 

Grayscale: Bitcoin is now investors' best bet against central bank money  printing - AZCoin News

Sonnenshein stated that Grayscale expects to increase doubly its existing workforce of 24 people, to proceed investing in advertisements and to launch six new offerings this year.

Grayscale’s investments act as trusts containing increasing hordes of coins that are not exchangeable by owners, like Bitcoin. In most of the trusts in the marketplace, owners can sell their property. The performance of the Grayscale Bitcoin Trust can theoretically affect the supply of Bitcoin, Mr. Sonnenshein stated.

Mr Sonnenshein noted that, “So there is definitely an argument to be made about Grayscale and really any other vehicle that may be removing Bitcoin from circulation and putting it into a financial product inherently increasing the scarcity of an already scarce asset,” 

“This is a verifiable scarce asset and so when there are mechanisms that are removing them from circulation, that’s inherently making it an even scarcer asset.”

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