Bitcoin Bulls Digging Heels As Google’s Investment Arm Backs Digital Currency Group

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Leading digital asset investment firm Grayscale Investments is an indicator of institutional demand for cryptocurrencies, particularly bitcoin. The Grayscale Bitcoin Trust claims $ 39.7 billion in assets under management (AUM). Today, the parent company received resounding endorsement from some of Silicon Valley’s top names.

In a rare fundraiser, Digital Currency Group, the parent company of Grayscale, has attracted major investors, including a division of tech giant Google, who are betting on the continued adoption of bitcoin and other crypto-coins. major currencies. SoftBank led a $ 700 million side spin in DCG with participation from CapitalG, which is the growth fund of parent company Google Alphabet, as well as Ribbit Capital and others. For its part, Google’s Capital G has $ 3 billion in assets under management.

The massive round values ​​the DCG at $ 10 billion and represents one of the few times Grayscale’s parent company has raised outside capital. Prior to this round, DCG had raised a total of $ 25 million in funding.

The company does not appear to have any plans to go public, according to DCG CEO Barry Silbert as cited by CNBC. DCG is on track to generate more than $ 1 billion in revenue in 2021.

Bitcoin bet

The involvement of Google’s CapitalG, among other funders, comes amid the bitcoin bull cycle in which the flagship cryptocurrency recently hit a new all-time high. Market leaders are convinced that bitcoin has more earning possibilities before the end of the year.

Bitcoin’s dominance currently hovers at 44% while Ethereum’s is just over 19%. While meme coins in particular have been trading more independently of bitcoin in recent times, institutions are generally drawn to bitcoin first because of its track record and acceptable regulatory status, as evidenced by the recent approval of bitcoin. ‘a BTC futures ETF.

Grayscale sues Bitcoin ETF

Now that regulators have cleared a bitcoin futures ETF to trade, Grayscale aims to convert its bitcoin trust into a spot market ETF. According to Grayscale’s global ETF manager David LaValle, as quoted by Bloomberg, the company is confident that the SEC will give the green light to its Bitcoin ETF application by July 2022.

Since the launch of the ProShares Bitcoin Strategy ETF (BITO) in October, the price of bitcoin has reached a new all-time high of nearly $ 67,000. He has since withdrawn from that level but remains above the psychologically sensitive threshold of $ 60,000.

The Bitcoin Fear and Greed index is 74. GreedCurrent price: $ 61,950 pic.twitter.com/Qbr9mQBeoS

– Bitcoin Fear and Greed Index (@BitcoinFear) November 1, 2021

The Bitcoin Fear & Greed Index shows ‘greed’ with a reading of 74 as investors expect wide-scale adoption to push prices further.

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