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While Bitcoin continues its chaotic price action, incessantly falling and rising through key levels, some paranoid traders fear that institutional investors have been alienated from the encrypted market. However, reports indicate that Grayscale's growing warfare has continued to swell, while institutional players continue to show interest in cryptographic resources. This, of course, makes it more than palpable that the institutions see immense value in cryptocurrencies and potentially that the market fund is entering.
Grayscale owns $ 826 million in Bitcoins
According to a research report published on December 3, by the offices of the Diar cryptographic analysis unit, Grayscale Investments, an authentic "trusted authority on the investment in digital currency", has accumulated thousands of BTC for the its internal Bitcoin Investment Trust (GBTC)).
From the beginning of 2018, Grayscale, owned by Barry Silbert, created Digital Currency Group (DCG), saw its Bitcoin chests inflating of 30,600 BTC to 203,000 totals, representing now over 1% of the total of the circulating supply of the asset. <img title = "ueditor_ec85c97be2220561d41ce8e06bafb0f9.jpg" src = "https://www.longhash.com/uploads/images/2018-12-04/ueditor_ec85c97be2220561d41ce8e06bafb0f9.jpg" alt = "Grayscale-Bitcoin-Holdings.jpg”/>
As seen in the table above (originated by LongHash), Grayscale's GBTC portfolios, a vehicle that allows retailers and investors to purchase BTCs held on the US OTC market, posted monthly increases on a monthly basis. Diar wrote on the subject:
"However, record inflows have led to recordings of holdings in Bitcoin equivalents with a December decline of a little compared to the beginning of the previous month."
Although the GBTC user base is also made up of retail investors, the steady increase in holdings in BTC indicates that capital continues to flow in this market through trusted third parties (irony of fate), a plausible positive sign.
Institutional players continue the Crypto Foray
The grayscale is not the only DCG subsidiary to see a peak in investment interest. Genesis Trading, also owned by the New York-based conglomerate, recently saw its CEO, Michael Moro, take CNBC to note that his company's loan service saw an incredibly strong reception . This "incredibly strong reception" seems to have taken the form of interest from "60+ institutional counterparts" who have requested cryptocurrency loans through "a dozen digital resources" over the past six months. According to the statistics of the company itself, these loans amounted to a monetary value of $ 553 million, a staggering sum to put it lightly.
Moro added that while many of its institutional debtors have already paid off their loans in full, there are still $ 130 million in active loans, a figure that has only grown during the seven-month loan term. This indicates that the crisis in the encrypted market has not deterred a little these industry participants, contrary to what is believed.
This ongoing institutional interest has not gone unnoticed, with a number of forward-looking cryptocurrency institutions and innovators who have created products, services and platforms, aimed at people with high net worth and on Wall Street. The Nasdaq, for example, recently announced that it has joined VanEck to work on a Bitcoin contract and "Crypto 2.0", intended for institutional and retail investors.
Related reading: Why do Novogratz, Fidelity and Bakkt operate on institutional investors in cryptography?
Fidelity Investments, which promotes the business of 13,000 institutional clients, has also announced its digital asset-centric subsidiary, with the goal of offering a reliable cryptocurrency of first order and an execution commercial.
Even without institutional investments, Crypto Still Valuable
But even if the institutional money does not continue to spread and the platforms mentioned above are wavering, as the skeptics expect, Bitcoin and his brothers altcoin will still have large shoes to fill. As reported by NewsBTC last week, at BlockShow Asia 2018, Tom Lee, head of research at global cryptocurrency consultants Fundstrat Global, said that Bitcoin is "bent, not broken". The supporter of the long-standing cryptocurrency, a bit infamous for his irrational price predictions, added that the value of $ 1.3 billion of Bitcoin in the value of on-chain transactions, reported 2.5 times that of PayPal, indicates that this innovation has "resilience".
He added that there is still "enviable profitability" in the cryptosphere, with BitMEX alone, which will likely generate $ 1.2 billion in fiscal 2018, making more of the father and Nasdaq of the Hong Kong Stock Exchange. This profitability factor alone should lead investors to continue investing in cryptocurrencies and related projects.
Jackson Palmer, CEO of Dogecoin, echoed the sentiment that cryptocurrencies have and will continue to maintain an intrinsic value, even without the support of Wall Street hotshot. In an editorial published in Diar, Palmer, an Adobe developer, noted that the basic projects, the Lightning Network and Plasma framework, can help "cryptocurrencies react" and keep the heart of the decentralized revolution alive.
Related reading: Dogecoin Creator: Bakkt, Fidelity and Bitcoin ETF are bad for cryptocurrency
Palmer was not alone in his anti-centralization statements, pro-crypto, with the co-founder of Ethereum Vitalik Buterin, Marc Andreessen, one of the world's major venture capitalists, and even Edward Snowden who praises cryptocurrencies for their ability to transcend traditional entities.
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