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Hedge funds are buying Bitcoin, despite Goldman Sachs skepticism


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Since the halving of bitcoin, digital asset manager Grayscale Investments has bought more Bitcoin, on behalf of its institutional clients, than has been mined.

The company, which is the largest digital asset manager in the world, continues to accelerate its Bitcoin acquisition rate, regardless of what Goldman Sachs has to say on the matter.

According to data provided by independent researcher Kevin Rooke, Grayscale added 18,910 BTCs to the Bitcoin Trust fund in just over two weeks after halving. In that period, only 12,337 coins were mined, meaning that Grayscale acquired the equivalent of 153% of all Bitcoin produced since halving.

Grayscale acquired the equivalent of 153% of all Bitcoin mined since halving. Image: Kevin Rooke, Twitter.

Rooke commented on Grayscale's apparent contempt for Goldman Sachs' professional opinion of Bitcoin. “Grayscale's Bitcoin Trust has bought 18,910 Bitcoins since halving. Only 12,337 Bitcoins were mined in this period. Wall Street wants Bitcoin and they don’t care what Goldman Sachs has to say ”, wrote Rooke.

In a May 27 report, Goldman Sachs revealed it dislikes Bitcoin so much. In fact, he doesn't even recognize it as an asset class.

Goldman Sachs warned against hedge funds trading cryptocurrencies – citing the lack of serious investment logic. "We also believe that while hedge funds may find cryptocurrencies attractive because of their high volatility, this fascination is not a viable investment logic," they said in the report.

Grayscale hasn't just bought Bitcoin in the past few weeks. Independent surveys published on Reddit on May 18 showed that Grayscale had purchased the equivalent of 33% of all Bitcoin mined in the 100 days leading up to the bitcoin halving.

In 2018, only 57% of Grayscale's customers were institutional investors. But, according to its Digital Assets Investment Report for the first quarter of 2020, the vast majority (88%) of Grayscale's customers are now institutional investors. "88% of inflows this quarter came from institutional investors, the overwhelming majority of whom were hedge funds," said the report. What do these hedge funds know that Goldman Sachs does not?

* Translated and republished with authorization from

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