The CEO of the world’s largest digital asset manager, Grayscale, says that the demand from institutions has only accelerated in 2021. He also said that the narrative for large corporations to jump on the Bitcoin bandwagon has shifted from “why” to “why not.”
Why Not Buy Bitcoin?
A couple of years back, the cryptocurrency community was celebrating the fact that some hedge funds are talking about Bitcoin, eagerly anticipating their decision to finally join the BTC bandwagon and buy Bitcoin as part of their portfolio.
Over the past year or so, this narrative has shifted immensely. Major public companies, the latest of which being none other than Elon Musk’s Tesla, have already put Bitcoin on their balance shift. Large hedge funds and billionaire investors are on board, allocating certain portions of their portfolio to buy Bitcoin.
This has been perhaps mostly reflected in the tremendous growth in the assets under management of Grayscale – the world’s leading digital asset fund. Just recently, CryptoPotato reported that they’ve managed to top $30 billion in AUM – a record for the company. Now, the CEO, Michael Sonnenschein, says that the demand is nowhere near decreasing. In fact, he said that it’s only accelerating in 2021, despite 2020 being a massive year for Bitcoin’s institutional adoption.
“You have @ElonMusk @michael_saylor @jack. You’re going to see a lot of other visionary leaders and disruptive companies actually realizing it has really moved from why to why not,” says @sonnenshein on corporations investing in #bitcoin pic.twitter.com/6FnwEjGFNL
— Squawk Box (@SquawkCNBC) February 10, 2021
In addition, Michael Sonnenschein revealed that the narrative for companies to buy Bitcoin has changed from “why” to “why not,” indicating that the merits of the cryptocurrency have become more than apparent.
Institutions Lining Up to Buy Bitcoin
This doesn’t come as a surprise in the current Bitcoin landscape. Just a few days ago, CryptoPotato reported that Bill Miller’s fund, Miller Opportunity Trust, has filed a document with the SEC that reveals its intentions to invest in the Grayscale Bitcoin Trust.
Moreover, it’s not only Bitcoin that the trust has been hoarding. Last week, Grayscale also added a massive $38 million worth of ETH after having halted its Ethereum Trust for more than a month.