Research: Grayscale Investments to Control 1% BTC

Looks like this large player see new possibilities in the crypto market fall
06 December 2018   432

2018 can already be considered one of the worst for the cryptocurrency market, however some large players did not fail to take advantage of falling prices to increase the size of their assets. One of them was Grayscale Investments, which included Bitcoin Fund Grayscale Bitcoin Investment Trust (GBTC) at the beginning of December, controlled more than 200,000 BTC, Bitcoinist writes, citing a study of Diar.

As noted, 17.4 million bitcoins are currently released, which means that GBTC, on behalf of its investors, holds about 1% of the entire issue. This also puts Grayscale at the top of the list of institutional cryptocurrency investments.

At the same time, Barry Silbert’s part of the Digital Currency Group is to accumulate additional bitcoins on a monthly basis. Speaking as a cryptocurrency holder for its clients, GBTC earns 2% in the form of an annual commission on the amount of savings, so this tactic from a business perspective is definitely justified.

At the same time, the fall in Bitcoin prices in 2018 also means that the value of GBTC-controlled assets in dollar terms is decreasing. At the beginning of December, this figure was $ 826 million - the lowest figure for the entire year.

However, Bitcoin is not the only cryptocurrency to which large investors turned when the market fell. In the same study, Diar said that in the first 11 months of 2018 more coins appeared in the wallets actively trading Ethereum whales than in any other period in the history of this cryptocurrency. So, at the end of November, the large holders of Ethereum had 80% more coins than in January.

Bitcoin May Pass Gold Market Cap, - Novogratz

Mike Novogratz continues to be Bitcoin and cryptocurrency optimist 
25 March 2019   74

The founder of Galaxy Digital, Mike Novogratz, expressed the opinion that over the next 20 years, Bitcoin’s capitalization would “easily” surpass the gold market, currently estimated at $ 7.5 trillion. It is reported by The Daily HODL.

In a conversation with the founder of Morgan Creek Digital, Anthony Pompiano, Novogratz stressed that the inflow of institutional money to the cryptocurrency market is only a matter of time, and major players like Goldman Sachs and the Intercontinental Exchange (ICE) are already mastering a new industry.

I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work.
 

Mike Novogratz

Founder, Galaxy Digital

According to him, the growth potential of Bitcoin is strong and therefore it is advisable for investors to include the first cryptocurrency in their portfolios:

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.
 

Mike Novogratz

Founder, Galaxy Digital

According to him, the volume of the gold market is $ 7.5-8 trillion and in order to outperform this market, the first cryptocurrency needs to grow in price at least 100 times.

Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff. And so I think it seems like a pretty smart portfolio bet.
 

Mike Novogratz

Founder, Galaxy Digital

The founder of Galaxy Digital also touched on the topic of bitcoin futures.

The reality is, the CME kicked their butts. And these guys have limited resources on what they’re going to spend their focus, and they decided to spend it elsewhere. Finding leverage in Bitcoin is going to get easier as the architecture in the space gets better. You’re already seeing the lending market around Bitcoin went from 10% to like 3%. So once you can borrow you can short. And so now it’s not so hard to short Bitcoin. It used to be almost impossible to short Bitcoin in 2016… It wasn’t great, but it’s not critical. 
 

Mike Novogratz

Founder, Galaxy Digital

In February Mike expressed the opinion that, thanks to institutional money, Bitcoin will reach $ 8,000.