The leading cryptocurrency was founded on the principles of being permissionless and censorship-resistant. In short, a way to stick it to the establishment. But with Wall Street increasingly co-opting Bitcoin for its own ends, Hunt sees a coming Bitcoin identity crisis ahead.
The Institutions Are Coming in a Big Way
Grayscale deals only with accredited investors. This means they serve individuals earning more than $200k a year and a net worth of over $1 million. Or in the case of organizations, entities with more than $5 million in liquid assets, or all beneficial owners meeting the criteria for individuals above.
Grayscale’s Q4 2020 Report showed that last year’s total inflows equated to four times the cumulative inflows of the previous seven years. With over half of 2020’s coming in the final quarter of 2020.
“$3 Billion Dollar Quarter: Grayscale experienced unprecedented investor demand, with approximately $3.3 billion of inflows. Investment into the Grayscale family of products surpassed $5.7 billion during 2020, more than four times the $1.2 billion cumulative inflow into the products from 2013-2019.”
Their sudden interest in Bitcoin is for many reasons. A common theme from banks is the growing investor appetite for cryptocurrencies. There’s also the hedge narrative which is gaining traction as investors brace for a coming economic implosion.