1 August 2026
Here Is the Reason Why Grayscale Is Buying So Many Bitcoin
There has been an increase in the Grayscale investments from hedge funds and other institutional investors for its cryptocurrency trusts.
The director of investor relations at Grayscale, Ray Sharif revealed that hedge funds and other financial institutions have invested $1.7 billion into Grayscale Investment’s Bitcoin and cryptocurrency funds.
There was a Coinscrum markets podcast attended by Sharif to discuss Grayscales’ soaring volumes. As per the host Nisa Amolis, there is around $3.8 billion in assets by the crypto broker and custody under June management which is a huge difference from the $2.1 billion in AUM in May of 2019 and even the $2.2 billion in AUM in March of 2020.
Grayscale’s cryptocurrency trust weekly investment has increased over 800% over the year, from $3.2 million per week in 2019 to nearly $30 million per week in 2020.
2020 is so far the year of macro instability and unprecedented monetary stimulus, and institutions are looking to alternative hedges to weather the incipient crisis. And that's the reason why there is a sudden surge in interest.
The Grayscale executive shared that Out of the 90% or so of clients that come from institutions, 44% are multi-strategy hedge funds, while another sizeable portion comes from long/short hedge funds.
In the past year, over $390 million from the investors went into Bitcoin while $110 million went into Ethereum. It seems that Grayscale’s clients are diversifying into altcoins more; 38% of their clients hold more than just Bitcoin, up 9% from this time last year.
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