Bitcoin’s highest value was back in December 2017, and the market has been looking to get back to it ever since. Bitcoin has finally surpassed the $5,000 price level, making the drop from $20,000 about 74% instead of over 80%. Institutional investors have taken this movement and put more strength behind their bullish stance.
The New York-based firm, which is also a division within Digital Currency Group, managed to secure over $20 million in total investments, according to CEO and Founder Barry Silbert’s statement.
This boost makes this the best week that the company has experienced in almost two years, and the assets-under-management worth has increased to $1.21 billion.
BIG week for @GrayscaleInvest -> we raised over $20 million into the Grayscale family of funds, our highest week since 2017
— Barry Silbert (@barrysilbert) April 26, 2019
The increase follows a Bitcoin trading sentiment that started in December, when the price of Bitcoin was just $3,100. However, the price corrected and saw a new high of $5,650 on April 23rd. Presently, Bitcoin can be purchased for $5,275.50 each.
The Short Interest (DI) on the Grayscale Bitcoin Trust BTC product from the firm saw a 7.79% decrease, going from 12.05 million shares to 11.11 million shares. Often, this type of drop is a sign of a bullish tone with investors, and it could be credited to the reversal to the upside. During the April 26th trading session, GBTC decreased 0.70%.
The medium-term perspectives of the GBTC market did well, rising over 100% since February 6th, which has probably influenced the bullish opinion of investors. In the most recent financial report from Grayscale, GBTC had experienced a 2,721.3% increase since it was created, even though performance data from the last year showed a decrease of 47.6%.
By having strong asset inflows in the medium term, institutional interest appears to be climbing. The group of investors with Grayscale includes pensions, family offices, hedge funds, and other high net worth investors, and the way that they are interested in GBTC shows how bullish this group is becoming.
Rise in premium is a sign of institutional net buying (easier to buy this ETN from @GrayscaleInvest than buy via a crypto exchange)…
…another sign 2019 way better than 2018 for crypto pic.twitter.com/hdFh8y3sY9
— Thomas Lee (@fundstrat) February 19, 2019
This shift came at the same time of the uncertainty that the investors were having over the possibility of any kind of future in cryptocurrency. The biggest challenges were due the lack of regulatory oversight, constant news of fraud in cryptocurrency, and security needs.
However, as major financial players decide to create infrastructures that are more welcoming to cryptocurrency, the apprehension is slowly settling. Based on the steady growth of Bitcoin’s price, it is clear that the market is reaping the benefits as well.
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