- The widespread money printing that has come about as a result of the Coronavirus pandemic will eventually lead to massive inflation rates for fiat currencies
- Although the crypto market�s participants have long seen digital currencies as a way to escape the impacts of this, it now appears that �smart money� is taking notice as well
- The managing director for Grayscale Investments is now noting that his company�s regulated crypto funds are seeing unprecedented inflows
Bitcoin and the aggregated crypto market have fared quite well in spite of the weakness seen across the global markets.
The benchmark cryptocurrency’s recent uptrend has allowed it to be one of the best performing assets in the world in 2020, with its uptrend partially being driven by news of legendary investors like Paul Tudor Jones adding it to their portfolios.
He isn’t the only traditional investor who is taking to Bitcoin to hedge his portfolio against inflation risk either.
Recent comments from the managing director of Grayscale Investments elucidate that family offices, RIAs, hedge funds, and others are flooding into crypto at a rapid rate.
Grayscale Managing Director: Inbound Interest in Crypto from “Smart Money†is Immense
Many investors as of late have been pointing to the growing open interest seen while looking towards the CME’s Bitcoin futures as a sign of increased activity amongst institutions within the market.14 BTC & 30,000 Free Spins for every player, only in mBitcasino’s Crypto Spring Journey! Play Now!
The line of reasoning is quite simple: because there is a divergence between open interest and trading volume, the majority of these investors are taking a passive approach to BTC futures, employing them to gain exposure to the crypto’s price action.
This trend can be clearly seen while looking towards the data on the below chart.
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