Despite the crypto bear market, some institutional investors continue to invest and show their faith in Bitcoin. Grayscale, is a digital currency asset manager that was established by Digital Currency Group in 2013. Grayscale’s Bitcoin Investment Trust now holds over 205,000 Bitcoin, at an estimated value of $776 million today. This makes Grayscale the largest institutional investor in Bitcoin, holding nearly 1% of all Bitcoins.
According to Grayscale, “Bitcoin Investment Trust’s shares are the first publicly quoted securities solely invested in and deriving value from the price of Bitcoin.” Grayscale has continued to add to their Bitcoin position each month of 2018, despite the downtrend in Bitcoin prices.
Grayscale’s Bitcoin Investment Trust currently trades at a 17% premium over current Bitcoin prices, showing the appeal of a Bitcoin trust for accredited investors. They state that the trusts helps accredited investors gain exposure to Bitcoin without, “the challenges of buying, storing, and safekeeping bitcoins”. That being said, the investment trust is just as volatile as Bitcoin itself, and anyone that invested this year is probably holding onto some rather large bags.