Grayscale CEO: Pension funds and endowment funds are entering the Bitcoin market

Grayscale's new CEO Michael Sonnenshein said in an interview with Bloomberg that pension funds and endowment funds are actively investing in Grayscale's series of funds.
Sonnenshein described Bitcoin as a scarce asset, saying: “We’ve seen participation from the hedge fund space and more recently, other institutions, pension funds and endowments.”
Grayscale has been at the heart of the bitcoin buying spree and currently holds about 3% of all bitcoins in circulation. The company continues to accumulate large bitcoin positions as more institutional investors seek exposure to the cryptocurrency.
Its total assets under management (AUM) have exceeded $27 billion across ten different products. Grayscale Bitcoin Trust remains its most popular product by far, with over $23 billion in AUM.
Grayscale’s Ethereum Trust is currently valued at around $3.6 billion, while its Digital Large Cap Fund holds nearly $339 million.
Pension funds are following in the footsteps of a wave of institutional buyers who began entering the Bitcoin market in 2020.
A survey conducted last year by Fidelity Investments found that 36% of financial institutions in the United States and Europe said they owned cryptocurrencies or derivatives. More than a quarter of respondents said they held Bitcoin, while 11% said they owned Ethereum.
Grayscale Investments said the institutional influx into cryptocurrencies and Bitcoin is intensifying, with pension funds and endowment funds being the latest entrants into the space.