That’s why institutional investors are pouring millions into Bitcoin, according to Grayscale

The biggest manager of digital currencies, Grayscale, says institutions see crypto as a potential hedge against global economic instability.

In a new episode of the Coinscrum podcast, Reichanech Sharif-Askari, in charge of investor relations and business development, reveals that the average weekly investment in the company’s crypto trusts has increased by more than 800% this year.

Sharif-Askari says Covid-19 played a significant role in stimulating the Bitcoin scenario .

“COVID-19 and the effects of the restrictions laid the groundwork for Bitcoin to be considered a stock of value. Institutional investors take active long positions in digital assets through our products.

This is because they are looking for a scarce asset that can be used as a hedging tool for inflation in a world where they offer us an unprecedented monetary stimulus. “

In the first quarter of this year, Grayscale raised half a billion dollars for all its products. Investors poured $ 390 million into the Grayscale Bitcoin Trust and $ 110 million into the Ethereum Trust.

Initially, people were attracted to Grayscale products to receive exposure through tax-exempt pension accounts. However, the company claims that 90% of the inflow of funds is currently from institutional investors.

Traditional hedge funds represent the majority of institutional investors in Grayscale. Sharif-Askari said that 44% of the inflow of funds comes from funds with many strategies, and a significant part also comes from binary funds.