Grayscale, one of the most interesting investment choices for cryptocurrencies, has an addiction to crypto. Even in the wake of what some has called a crypto winter, they keep buying bitcoin. This according to a report from CNBC, that states that they have raked in more than $300 million in crypto just this year. Their business model is an interesting one.
Grayscale, The Crypto Gobbler
Grayscale, an investment boutique that has several cryptocurrency funds under its wing seems to be pretty successful despite the bear market. This because they keep gobbling on bitcoin, even when the market faces a massive drop. According to an article by CNBC, the firm has invested more than $300 million in crypto just this year.
The firm offers a vast variety of investment choices, even a Zen-based cryptocurrency fund. But the star of the show and their best performer in the Bitcoin Investment fund, that has attracted the attention of investors wanting to get their money in crypto through a trustable broker. Is here where the company has put most of their stake.
Another report states that Grayscale now has more than 1% of the bitcoin world supply, being the institution with more bitcoin in the whole world. Despite the sorry state of the market, they have continued to rake in cryptocurrency.
Bear Market Good For The Business
Grayscale declares that the current state of the market has not slowed down investment from their clients. In fact, it has made them invest more in their offerings. They declared that:
“Investors are taking the pullback as an opportunity to increase their exposure. The price has not slowed down the pace of investments — it’s actually caused us to broaden our relationships.”
So, their investors have actually allocated more funds to bitcoin, and more investors have knocked on their door.
This could seem strange to some, but it is not at all. Investors tend to keep buying more of an asset that is in the way down in price looking to profit in the case of a sudden bull run. But they need to be confident in the asset capabilities and its value. And it seems they are doing just that.
However, Grayscale investors are mostly institutions that can afford the sudden losses of getting their assets to go to prices like the ones we’ve seen till now. Also, Grayscale funds are sold at expensive prices compared with the cryptocurrency, so other investors prefer to go to other OTC markets.