The cryptocurrency industry may be in a bear market, but for one investment firm that’s not impacting it as it generates $330 million this year.
Opportunity for Investors
For New York-based Grayscale Investments, a subsidiary of the Digital Currency Group, 2018 has proven to be very profitable for it.
According to a Q3 2018 report from the digital currency investing firm, year-to-date (YTD) profits amount to $329.5 million. This is 33 percent up from the previous three months. Additionally, $81.1 million was brought in from investments in Q3 2018. The report states that 70 percent of the investment came from institutional investors.
Since the inception of Grayscale Investments in 2013, this is the strongest YTD inflows through September that it has experienced during any calendar year. The downturn in market prices may also be presenting investors with the opportune moment to buy into Bitcoin.
The figures show that during Q3, 73 percent of investment went into the Bitcoin Investment Trust, while 27 percent went to Grayscale products tied to other digital assets.
Speaking to CNBC, Michael Sonnenshein, managing director of Grayscale Investment, said:
Bitcoin prices doing nothing but go down the entire year has not deterred our existing clients from putting more capital to work. Asset inflows are really strong despite these price declines.
He added:
Investors are taking the pullback as an opportunity to increase their exposure. The price has not slowed down the pace of investments — it’s actually caused us to broaden our relationships.
Strong investment from institutional investors suggests that they are responding to the market as it continues to gain mainstream adoption.
Coinbase Valuation Rises to $8 Billion
Another player in the field of crypto that is reaping the rewards is Coinbase.
The San Francisco-based exchange announced at the end of October that it had raised $300 million in its latest funding round, pushing the company’s value to $8 billion. To date, Coinbase has raised $525 million from investors. The use of the extra $300 million will go toward boosting the adoption of cryptocurrencies.
This year has seen Coinbase expanding its services in various ways. It has launched its Coinbase Custody, which aims to attract more institutional investors to the space. It has also opened a new office in Dublin to better serve the European market, in addition to bringing on high-profile people to its company. Not only that, but the crypto exchange has joined with Goldman Sachs-backed startup Circle to support the USDC stable coin.
With the year coming to a gradual close, what else will be in store for Coinbase, and where does its future lead?
Do you think this is the right moment to jump into crypto? Have you invested money during the bear market? Let us know in the comments below.
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