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Big Bitcoin Bets

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Leading digital asset investment firm Grayscale Investments is a gauge of institutional demand for cryptocurrencies, especially Bitcoin” — Paul Ebeling

The Grayscale Bitcoin Trust boasts $39.7-B in assets under management (AUM). Now it has received a very strong endorsement from some high-profile names in Silicon Valley.

In a rare funding round, Digital Currency Group, Grayscale’s parent company, has attracted some major investors, including a division of tech giant Google, that are betting on the further adoption of bitcoin and other major cryptocurrencies.

SoftBank led a $700-M secondary round into DCG with participation from CapitalG, which is the growth fund of Google parent company Alphabet, as well as Ribbit Capital and others. Google’s Capital G has $3-B in AUM.

The massive round values DCG at $10-B and represents one of the few times that Grayscale’s parent company has raised outside capital. Prior to this round, DCG had raised a total of $25-M in funding

The firm does not appear to have its sights set on going public, according to DCG’s CEO, DCG is on track to generate more than $1-B in revenue in Y 2021.

The participation of Google’s CapitalG, among other backers, comes in the midst of bitcoin’s Bull cycle in which the flagship cryptocurrency has recently attained a new all-time high.

And we here at LTN are convinced that bitcoin has more runway for gains before this yr is over.

Bitcoin’s dominance currently hovers at 44% while Ethereum’s is just over 19%. While meme coins in particular have been trading more independently from bitcoin of late, institutions are generally drawn to bitcoin first given its track record and acceptable regulatory status, as evidenced by the recent approval of a BTC futures ETF.

Now that regulators have allowed a bitcoin futures ETF to trade, Grayscale has its sights set on converting its bitcoin trust to a spot-market ETF.

According to Grayscale’s global head of ETFs, the firm is confident that the SEC will green-light its bitcoin ETF application by July 2022.

Since the ProShares Bitcoin Strategy ETF (BITO) launched in October, the bitcoin price set a fresh all-time high of close to $67,000. It has since pulled back from that mark, but remains above the psych sensitive $60,000 mark.

The Bitcoin Fear & Greed Index is flashing “greed” with a reading of 74 as investors expect wide-scale adoption to boost prices further

Have a prosperous day, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.