In recent times, we have witnessed a growing number of institutional investors in Cryptocurrency. One good thing about this new development is that it reinforces the possibility of mass adoption of Cryptocurrency. Cryptocurrency has become an important, mature, safe-haven asset.
While in a previous article, we discussed the top banks investing in cryptocurrency, in this article, we will explore other leading institutional investors in Cryptocurrency. However, the list is not exhaustive as we only mentioned a few
Grayscale Bitcoin Trust
This is currently the leading institutional investor in Cryptocurrency, and it is entirely unsurprising. Through its Bitcoin Trust Fund (GBTC), Grayscale owns and tracks the price of bitcoin. At the time of publishing this post, the firm holds about 449,596 BTC, valued at $5.1 billion. This number of bitcoin represents 2.14% of the digital asset’s total circulating supply.
Listed on the OTCQX, Grayscale has bought about 70% of the newly minted bitcoin in 2020. It almost doubled its portfolio in the process. Meanwhile, you need to know that GBTC holds BTC on behalf of accredited corporate investors. These investors value privacy and bitcoin’s store of value credentials. They are also reluctant to gain direct exposure to the asset.
Grayscale operates up to ten crypto investment products solely focused on institutional investors. The funds cover Ethereum (ETH), Bitcoin Cash (BCH), Zcash, Ripple (XRP), and many more.
The second leading institutional investor in Cryptocurrency is Microstrategy Inc. Although Grayscale may be the originator, it is Microstrategy has been making the headlines in recent months and weeks. This Nasdaq-listed company bought $425 million worth of bitcoin in between August and September 2020. The investment made BTC the main reserve asset of Microstrategy Inc.
This multi-billion dollar firm currently holds 38, 250 BTC, in a move that signals increasing institutional adoption. With the current exchange rate, this portfolio is worth more than $433 million. According to Michael Saylor, the investment reflects their belief that Cryptocurrency (bitcoin in particular) is a dependable store of value. Michael further states that bitcoin has more long-term appreciation potential than holding cash.
Coinshares Ltd is an investment fund firm that is based in the United Kindom. It focuses primarily on direct and indirect exposure to bitcoin and a host of other cryptocurrencies. Coinshares manages up to $1 billion in digital assets, and bitcoin makes up almost 80% of the total asset. On behalf of the investors, this firm currently holds 69,730 BTC, valued at $790 million.
Coinshares’ subsidiary (XBT Provider) offers two globally exchange-traded notes (ETNs) in Bitcoin and ethereum. The ETNs are listed on Nasdaq Nordic in Stockholm, Sweden. Also, retail investors can buy these instruments. However, there was a significant setback when the U.K. financial regulator banned the sale of ETNs to retail clients in the country.
Another one of the top institutional investors in Cryptocurrency today is Square Inc. Jack Dorsey, the founder of Square Inc., announced that they had moved one per cent of Square’s total asset into biotin. The announcement was made on October 8, 2020. According to Square, Amrita Ahuja, bitcoin is positioned to become a more ubiquitous currency as we grow into the future.
Therefore, the company intends that as Cryptocurrency grows in adoption, they will learn and be part of it in a disciplined way. After Square’s announcement, bitcoin’s price went up by more than 8% within 72 hours. Square holds about 0.022% of the total bitcoin in circulation.
Galaxy Digital Holdings
Galaxy Digital Holdings is a TSX-listed company that is out to institutionalize the digital asset and blockchain space. The firm currently holds about $16,651 BTC, which is worth $188 million. Galaxy Digital Holdings provide asset management services and investing, advisory, trading services, and making a principal investment. This is one of the top institutional investors in bitcoin holding the digital asset as a hedge against inflation.
Hut 8 Mining
This is a publicly-traded company that is listed on the bitcoin treasuries website. Hut 8 Mining trades on the Toronto Stock Exchange (TSX), and it holds bitcoin as a reserve asset. The company currently holds more than 2,900 BTC. Hut 8 Mining offers investors direct exposure to bitcoin without the investors going through the technical complexity or constraints of buying bitcoin themselves.
This is also a publicly-traded company that is listed on the London Stock Exchange. If you are an investor who doesn’t want to get in on the game but do want to lay down money buying the underlying asset, an investment in Argo Blockchain seems good. As at the end of September, Argo Blockchain holds about 126 BTC.
The high number of institutional investors plying their trade in the crypto space indicates mainstream crypto adoption. The ground is set, and it is all a matter of when it will happen; and not if it will happen. What is your opinion about the bitcoin held by firms in reserve? Kindly share your thought and opinion in the comment box provided below.