BitGo and Grayscale Assets Jump to $16 Billion as Institutional Adoption Surge

December 25, 2020 2:58 PM UTC

Amid the growing interest of institutional investors, BitGo digital assets under custody have rallied exponentially to hit the $16 billion mark for the first time. In an official media briefing, the firm noted that institutional investors are actively exploring crypto assets “for custody, trading, and lending.”

The newly achieved milestone of the digital assets company tells a splendid performance of the crypto sector and a distinct summary of institutional interest. Leading the charge, the US business intelligence firm MicroStrategy purchased $425 million worth of Bitcoin in August. Earlier this month, the firm declared to sell $400 million convertible senior notes to purchase more Bitcoin. The bond sale eventually used to buy Bitcoin as per plan. As of now, more than $1 billion worth of Bitcoin is in the pocket of MicroStrategy.

Mike Belshe, CEO of Bitgo, said:

 “We’re seeing unprecedented interest from institutional investors as a result of the pandemic’s economic impact, as well as Bitcoin’s extraordinary performance.” 

Grayscale Trust Holds a Large Number of Bitcoin 

Market indicators and data records from industry insiders reveal that the US-based digital asset manager Grayscale also holds $16 billion worth of assets under management. According to data from Bitcoin Treasuries, Grayscale’s Bitcoin trust has amassed a large number of funds, maintaining more than 550,000 BTC worth $13.91 billion, which draws nearly 70% of the total BTC possessed by publicly traded firms.

Recently, the firm has purchased an additional 14,591 BTC on behalf of its users. Grayscale presents investors with a cost-effective means of getting crypto exposure without actually acquiring the asset. This strategy withdraws the challenges of buying, storing, and safekeeping digital assets directly.

This month, Bitcoin’s price has smashed the $20,000 barrier after endless speculations. According to data from CoinMarketCap, the price of bitcoin surged to an all-time high of $24,450.

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