Published
3 years ago on
January 18, 2021
Table of Contents
- Growing Institutional Investor Interest
- Is Grayscale The "ARK" Of Crypto?
- NYDIG Has A Contrarian View
- Major Coinbase Outflow Incoming?
Grayscale Investments, a leading digital currency investing and cryptocurrency asset management firm has raised more than $700 million on January 15, its largest single asset raise day ever.
This was confirmed by Michael Sonnenshein, CEO of digital asset manager Grayscale Investments, who tweeted:
"Yesterday, @Grayscale raised north of $700 million into its family of products...momentum from Q4 seems to picking [sic] up speed into the new year."
Growing Institutional Investor Interest
As per Sonnenshein, this signifies a growing amount of interest among institutional investors in diversifying their investments by choosing other crypto assets besides bitcoin. This is a very positive step towards mainstream crypto adoption.
Grayscale's 2020 Q4 report shows that this quarter has been incredibly successful for the company, with a total of $3.3 billion in investments recorded across their range of products. Along with that, the firm's digital large-cap fund had an average weekly investment of $1.6 million. Plus, the Grayscale products excluding the Bitcoin trust saw an average weekly investment of $33.6 million in Q4.
Is Grayscale The "ARK" Of Crypto?
Following these revelations, Eric Balchunas, senior ETF analyst at Bloomberg, compared Grayscale as the "ARK" of crypto, noting several similarities between the two. Balchunas tweeted:
"The similarities are pretty amazing. I think both hung in relative oblivion for 3-4 yrs, had like $2b 12mo ago ago and then boom, 10x increase. Both defy trends: ARK w stock picking and grayscale w very high fees and 20%+ premiums.”
The Cathie Wood-led ARK Investment Management is an asset-management, and their flagship offering is the ARK Innovation ETF (ARKK). Over the course of a year, ARKK has returned more than 171%, with its total AUM growing tenfold to $21.8 billion.
NYDIG Has A Contrarian View
Sonneshien's overall bullish viewpoint of investors expressing interest in other cryptos directly contradicts the remarks made by Robert Gutmann, the CEO of New York Digital Investment Group (NYDIG). As per Gurmann, out of the last 100 conversations that NYDIG has had with investors 100 “have been about bitcoin and 0% of them have been about any other crypto asset.”
Major Coinbase Outflow Incoming?
Cryptoquant CEO Ki Young Ju made an interesting observation regarding this news. Ju alerted his followers that a significant coinbase outflow (at least 10,000 BTC) is about to occur following this news.
“Waiting for big Coinbase outflow (10k+ $BTC). If it happens, you better buy more Bitcoin. I think it's soon.”
The CEO had earlier noted massive Coinbase BTC outflows are usually a major bullish sign since these coins usually flow to their new custody-looked-like cold wallets. As Ju puts it:
"If Coinbase moves a significant amount of Bitcoins to other cold wallets, it would indicate OTC deals.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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