US Insurers Invested $3 Million in Grayscale’s Crypto Trusts in Q1 2020

In short

  • Six US insurers have invested in crypto merchandise supplied by Grayscale throughout Q1 of this 12 months.
  • In December 2020, MassMutual, one other insurance coverage agency, made a $100 million guess on Bitcoin.

Six US insurers purchased shares in Grayscale’s crypto trusts within the first quarter of 2021, in keeping with monetary analytics agency S&P Global. Mixed, their investments quantity to about $3.1 million. 

The traders purchased shares within the Grayscale Bitcoin and Ethereum Trusts. These are publicly-traded trusts that use traders’ cash to purchase crypto. 

They’re type of like an actively-managed exchange-traded fund—and the closest factor to at least one within the US; the SEC has rejected earlier functions and has not accepted these at present into account.

Institutional traders usually want to spend money on Grayscale’s trusts somewhat than Bitcoin or Ethereum itself. That’s as a result of Grayscale handles the shopping for and storage of the crypto, and its trusts are registered with the SEC. 

The six insurers are Grinnel Mutual, Donegal Mutual Insurance coverage, State Mutual Insurance coverage, Safeway Insurance coverage, Westfield Insurance coverage, and Fidelio Insurance coverage. 

All are primarily based within the US, though none of their investments have matched MassMutual—one other insurance coverage agency—that made a $100 million guess on Bitcoin in December 2020. 

How did the insurers spend money on crypto?

The six insurers largely invested in Bitcoin via the Grayscale Bitcoin Belief, or GBTC.

Grinnel Mutual led the best way, shopping for 18,000 GBTC shares for roughly $968,000. Donegal Mutual Insurance coverage adopted carefully, shopping for 20,000 shares of GBTC, value simply over $900,000 on the time.  

State Mutual Insurance coverage was the one insurer to purchase shares in Grayscale’s Bitcoin and Ethereum Trusts. The Georgia-based insurer purchased 13,000 shares of the Bitcoin Belief, and 9,000 shares of the Ethereum Belief, for about $491,000 and $141,500 respectively. It purchased probably the most shares within the Ethereum belief out of any of the six insurers.

Safeway Insurance coverage purchased just below $400,000 of GBTC, and Westfield Insurance coverage barely lower than $200,000. Fidelio Insurance coverage invested lower than $50,000 within the Grayscale Ethereum Belief. It was the one insurer to speculate solely in Ethereum. 

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