Big Companies Are now Holding Billions in Crypto!

It was announced yesterday that BitGo now holds $16B in digital assets under custody. Another company also reached the same figure a day afterward; Grayscale, which invests crypto assets for publicly-traded trusts.

Institutional investors converge to the crypto market this year. The leading firm was Michael Saylor’s MicroStrategy, the US business intelligence firm that purchased $425M worth of Bitcoin in August and September. And now, MicroStrategy owns around $1B worth of Bitcoin, and companies that offer crypto custodial and investment services are in demand.

The CEO of Bitgo, Mike Belshe stated, “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 forerunner cryptocurrency broke a new ATH price of around $25,000 this month, after ultimately breaking through the $20,000 bracket last December 16, 2020.

On the other hand, Grayscale’s Bitcoin Trust lets investors trade shares in a trust that holds large amounts of Bitcoin. The trust trades are on the stock market.

Grayscale’s Investment Holdings now holds $16B worth of assets under its management, according to bybt.com, a website that tracks Grayscale Holdings.

Furthermore, the Trust holds almost 550,000 Bitcoin in total, which represented around 70% of the total bitcoin held by traded companies according to Bitcoin treasuries.

BitGo holds all 115,000 BTC held in exchange for WBTC, and ERC-20 token that represents Bitcoin. BitGo is also a prime broker for institutional investors.

BitGo’s attention to institutional investors began in 2013 with the launch of BitGo’s multi-signature wallets. Ever since then, BitGo launched BitGo Trust Company, a qualified custodian designed to introduce digital assets in the industry.

There have been many speculations about the possibility of PayPal purchasing BitGo in the past months, but Fortune stated that the deal has stopped in its tracks.