Institutional Crypto Fund Inflows Surge; MicroStrategy Plans $400 Million Infusion in Bitcoin (BTC)

Bhushan Akolkar Bitcoin News published December 8, 2020 | modified December 8, 2020

Crypto-Institutinal-Investors

Institutional Crypto Fund Inflows Surge; MicroStrategy Plans $400 Million Infusion in Bitcoin (BTC)

Citing data provided by digital asset manager CoinShares, Reuters reported that the institutional inflows to crypto funds stood at a net $429 million for the week ending December 7. This is the second-highest inflow pushing the total assets under management to the all-time high of above $15 billion. Previously, the largest weekly inflow on record was three weeks back at $468 million.

So far in 2020, the institutional money inflow to crypto funds has surged by nearly 500%. By the end of 2020, the total assets stood only at a mere $2.57 billion. The world’s largest crypto asset manager Grayscale registered a massive growth this year. In fact, it has now started aggressively promoting digital currencies by wooing bi investors with its #DropGold campaign.

Last week, Grayscale registered an additional inflow of $337 million across its crypto funds. With this, Grayscale total assets under management now stand at $12.7 billion. James Butterfill, investment strategist at CoinShares told Reuters:

“On an anecdotal level, based on our client conversations over the course of 2020, we have seen a decisive shift from enquiries of a speculative nature to those that begin with comments such as, ‘bitcoin is here to stay, please help us understand it’”. Given the levels of interest, this suggests we are only on the cusp of institutional adoption rather than it cooling down.”

MicroStrategy Plans Selling $400 Million Worth of Debt Securities to But Bitcoin (BTC)

Business Intelligence Firm MicroStrategy is going massively bullish in Bitcoin. In its latest announcement, MicroStrategy is planning to liquidate $400 million worth of debt securities and put that money into Bitcoin.

The latest announcement comes just within three days after MicroStragey chairman Michael Saylor announced purchasing an additional 2574 BTC at a price of around $19,600 for a total of $50 million. So far, the company has already invested $475 million of liquid cash in BTC and holds nearly 41,000 BTC or 2% of the total BTC supply. The company’s BTC investments now stand at $790 million approximately.

An additional $400 million would bring MicroStrategy’s BTC investments close to $1 billion. On the other hand, global investment giant Guggenheim Partners is also planning to get Bitcoin exposure by pouring nearly $500 million in the Grayscale Bitcoin Trust (GBTC). If these two companies manage to get the regulatory nod, we are seeing an additional $1 billion of institutional money coming to Bitcoin anytime soon.

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Bhushan Akolkar 387 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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