- Despite the bear market, Grayscale continues to purchase Bitcoin
- Their Bitcoin Investment Trust now holds more than 203,000 Bitcoins
- This move by Grayscale has shown the appeal of a Bitcoin trust for other accredited investors
While there are institutional investors who are worrying about the current crypto bear market, there are also those who are still willing to support the industry. Case in point: Grayscale.
Established by Digital Currency Group in 2013, Grayscale is a digital currency asset manager providing diversified exposure and secure access to the digital currency asset class.
Today, Grayscale’s Bitcoin Investment Trust holds more than 203,000 Bitcoin. It now has an estimated worth of $826 million. Since they continue to purchase BTC while others are selling, they have become the largest Bitcoin institutional investor. In fact, they currently hold over 1% of the circulating supply of Bitcoin. Moreover, they continuously purchase Bitcoin despite the downtrend in its prices. In a statement by Grayscale, they said:
“Bitcoin Investment Trust’s shares are the first publicly quoted securities solely invested in and deriving value from the price of Bitcoin.”
Their Bitcoin Investment Trust trades at a 22% premium over current Bitcoin prices. This has shown the appeal of a cryptocurrency trust for other accredited investors.
Effects of the Bear Market to Investors and Developers
Just a year after one of the biggest bear runs in blockchain history, investors are once again seeing a new downtrend. Due to the plummeting cryptocurrency prices, project teams, investors, cryptocurrency holders, and other influencers are becoming cautious and frustrated.
Similar to Grayscale, developers remain to be hopeful that the trend will eventually improve. Since developers are the cornerstones of this industry, more and more people are starting to follow them.
Developers Continue to Work Towards Promising Solutions
Despite the market conditions, there are still projects that continue to improve their technology. People are seeing developments in areas like scalability as well as interoperability are progressing.
In addition to balancing security and performance, developers are also struggling with the secure and decentralized storage of DApp data. The challenges lie in establishing a data channel between the real world and blockchain, designing a sustainable token model, and managing the blockchain. While it is expected that there will be some who will leave the industry, there are still many who are continuing to develop the core technology that powers blockchain all over the world.