Grayscale And BitGo Hold $16 Billion In Crypto As Of Late: Report

Grayscale and BitGo hold $16 billion in crypto as of late as the BTC assets under custody continue growing while the institutional interest rises as well. In our latest bitcoin news today, we take a closer look at the analysis.

Both Grayscale and BitGo now hold $16 billion worth of crypto assets under custody while the interest from institutional investors sparked once Michael Saylor announced that his company Microstrategy will invest in BTC in the summer. Digital assets company BitGo now holds $16 billion in digital assets under custody according to the announcement from one day ago. Grayscale that also invests in Bitcoin, reached the same figure a day later.

Institutional investors flocked to the crypto market earlier this year and the leading game-changer was Michael Saylor’s Microstrategy as they purchased $425 million worth of BTC in August and September. Now, the company owns over $1 billion worth of BTC, and companies offering crypto custodial services are now in high demand. Mike Belshe, the CEO of Bitgo said:

 “We’re seeing unprecedented interest from institutional investors as a result of the pandemic’s economic impact, as well as Bitcoin’s extraordinary performance.”

The number one cryptocurrency broke the new all-time high price of over $24,000 earlier this month after breaking through the $20,000 previous all-time high back in December. For Grayscale, the Bitcoin Trust allows investors to trade shares in trusts that hold huge pools of BTC which trade on the stock market. According to bybt.com, the website that tracks Grayscale holdings, the company holds $16 billion worth of assets under management. What’s even more, the trust holds almost 550,000 BTC in total which represents about 70% of the total BTC that is held by publicly traded companies.

BitGo custodies 115,000 BTC held in exchange for WBTC which is an ERC-20 token that represents Bitcoin. BitGo also acts as a primer broker for institutional investors. BitGo’s focus on institutional investors started in 2013 with the launch of the multi-signature wallets. Since then, the platform launched the Trust Company which is a qualified custodian.

There were many talks about the possibility of PayPal purchasing BitGo but according to the reports, the deal stopped as Belshe said:

“BitGo is an independent company and has not been acquired.”