Michael Sonnenshein, CEO of Grayscale, says institutional investors are also showing a growing interest in diversifying their investments by choosing crypto assets other than Bitcoin. Sonnenshein, who was recently named CEO, opened up shortly before the reveal that the company raised more than $ 700 million in a single day.
The fundraised asset, which according to the CEO is the largest single-day asset to date, follows the latest release of Grayscale’s Q4 report. According to this report, the fourth quarter of 2020 was successful, with total investments of $ 3.3 billion across the company’s entire product line.
However, in an earlier tweet, the CEO claims that institutional buyers are trying to minimize risk by diversifying their exposure. Sonnenshein says:
While Bitcoin continues to be our investors’ first step into space, there has been a surge in interest among allocators looking for broad exposure to avoid the need to pick winners and avoid losers.
Interestingly, Sonnenshien’s comments on investors expressing interest in other cryptos seem to contradict what Robert Gutmann, CEO of the New York Digital Investment Group (NYDIG), said. Gutmann reportedly claimed that “100 out of 100 of the last 100 conversations NYDIG had with investors were about Bitcoin and 0% about other crypto assets.”
To back up his own claim, however, the Grayscale CEO cites the company’s large-cap digital fund, which had an average weekly investment of $ 1.6 million, according to the Q4 report. Also on record are the grayscale products excluding the Bitcoin Trust, which invested an average of $ 33.6 million per week in the fourth quarter.
Do you agree that institutional investors would like to be exposed to other cryptos besides BTC? Let us know what you think in the comments section below.
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