Institutional players: is the competition building up for companies like Grayscale when it comes to BTC investment?

Quick Take

1 minute read

• Over the course of 2020, many institutional investors have got heavily involved with the crypto industry due to the pandemic and the economic crisis that has come as a result. 

• Grayscale is one of those institutions that has been very active throughout the industry this year. 

Over the course of 2020, many institutional investors have got heavily involved with the crypto industry due to the pandemic and the economic crisis that has come as a result. Grayscale is one of those institutions that has been very active throughout the industry this year. It has been making massive bitcoin purchases ever since it made an entrance into the market and since then, they have been buying the leading coin consistently. As a result, the company has made a lot of big returns on their investment and more than likely plan to invest more into bitcoin.

It is clear that the company is very bullish on the future of the leading cryptocurrency and have noted numerous times in the past that they are going to be industry players for a long time.

This comes as some enthusiasts within the industry are sceptical on the involvement that Grayscale has with bitcoin and crypto markets.

Some people are predicting that the company has a lot of debt and are using bitcoin as a way to pay them off. On the other side, some have indicated that it could be a way to manipulate the market in order to control the market dynamics and benefit from a bullish bitcoin in the short term.

As of yet, none of these predictions or speculation have been proved to be true. In fact, the more likely reason that the company has been getting heavily involved with bitcoin is more down to competition.

Grayscale, MicroStrategy, and MassMutual are all companies that will clash in the bitcoin industry over the next few months. They’re all getting involved with the world of crypto and as they are all institutions, the competition is rife. There are many traditional finance and technology companies that are getting involved with bitcoin and with MassMutual jumping on the bandwagon, it just backs this up.

Reports are indicating that MicroStrategy is looking to buy $650 million worth of bitcoin. The $100 million investment it made previously for general reasons made significant waves throughout the industry and could’ve potentially opened the eyes for its executives.

As more institutions get involved with the industry, it’s understandable for people to be worried about the future. It’s also worth noting though that as worry is an understandable thing to have during uncertain times like these, mainstream adoption is rising by the day.

Who knows where the industry will be in a year's time. It will certainly be interesting to watch though.

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