Analysts at Grayscale have recorded an influx of pension capital into bitcoin. This was reported by Michael Sonnenschein, CEO of the financial giant.
Speaking to Bloomberg reporters, he noted that pension funds are already entering the cryptosphere through asset management structures. One channel for their market penetration is Grayscale, whose cryptocurrency trust values are systematically updating highs.
Sonnenschein said:
„We have noticed participation in the [cryptocurrency] segment not only by hedge funds, which have been around for a while, but also by other institutions, such as pension funds. The size of the allocations they are making is also growing rapidly.
The Grayscale bitcoin trust currently controls around 3% of the total BTC supply. According to the company’s latest figures, this trust has accumulated up to $24.155 billion worth of bitcoins.
The total amount of funds raised in the company’s cryptocurrency trusts reached $28.4 billion this week.
Pension funds began entering the cryptosphere in 2020 following the rest of the big players. A recent survey by Fidelity Investments found that 36% of US and European financial institutions already hold digital assets. Of those, 25% said they had invested in bitcoin, while 11% had bought ether (ETH).
Sonnenschein added that BTC is a scarce asset. Such a factor will be a determining factor in the coming years and will push the cryptocurrency to new heights.