Whether it was a Democratic sweep led by Joe Biden or a re-election of Donald Trump, Bitcoin (BTC) would likely thrive. Industry executives, including DCG and Grayscale CEO Barry Silbert, say a Trump or Biden win would support BTC.
The optimistic stance of industry executives despite the glaring electoral risk comes after Grayscale’s Bitcoin study.
Trump wins = brrr
Biden wins = brrr
Either way, Bitcoin wins
– Barry Silbert (@BarrySilbert) October 28, 2020
Grayscale, a leading cryptocurrency investment firm with $ 7.6 billion in net assets under management, published a study on October 27 highlighting that the potential Bitcoin market has grown considerably in 2020.
In 2019, Grayscale found that 36% of investors in the United States were interested in investing in Bitcoin. This year, 55% of US investors are turning to Bitcoin. The study reads:
“Interest is on the rise: more than half of US investors are interested in investing in Bitcoin In 2020, more than half (55%) of survey respondents expressed interest in Bitcoin investment products . This marks a significant increase from the 36% of investors who said they were interested in 2019. ”
The almost 20% increase represents a substantial increase in general awareness over a short period. It also coincides with the growing demand for Bitcoin from institutions after Bitcoin’s impressive 200% + recovery since March.
Strengthening general public awareness of BTC
Strong fundamentals behind Bitcoin and rapidly growing demand could offset election risk in Q4.
For example, one particularly positive statistic that shows the sharp increase in demand for Bitcoin in 2020 is the rate at which people interested in BTC are becoming real buyers.
According to Grayscale, of those individuals who expressed an intention to invest in Bitcoin, 83% bought BTC. The researchers wrote:
“Of those who reported having invested in Bitcoin, 83% have made investments in the past year, indicating that digital currencies are an increasingly attractive component of modern investment portfolios.
The higher conversion rate from interested people to investors is important as the potential market for Bitcoin has grown rapidly.
Additionally, the potential US market of around 32 million investors does not include other major markets like Europe and Asia.
During this time, the number of investors familiar with Bitcoin has also increased noticeably. The survey found that 62% of investors are now familiar with BTC, up from just 53% in 2019. The study states:
“Based on this year’s survey, the market for potential Bitcoin investors is 32 million people – up from 21 million investors just a year ago. This year, 62% of investors said they were ‘familiar’ with Bitcoin, up from 53% in 2019. ”
What is BTC’s biggest attraction for investors?
The main reason for Bitcoin’s appeal remains its potential for exponential growth. Yet, in the eyes of institutional investors, it is also a hedging asset.
Bitcoin being an inflation hedging asset and having demonstrated exponential growth potential, it is a compelling portfolio asset for institutions and accredited investors.
As a result, the number of investors buying Bitcoin with a fraction of their capital or portfolio and relying on existing positions has also increased. Grayscale search says:
“The factors that sparked interest in Bitcoin last year resonated even more with investors in 2020. In 2019, 59% of survey respondents indicated that the ability to start with a small amount and increase their investment over time would be a motivator when considering Bitcoin investment products; in 2020, that number rose to 65%. “
The net spike in interest in Bitcoin follows a continued increase in inflows from institutional investors. As TBEN reported, Grayscale added $ 300 million to its net AUM in one day on October 23 as the price of Bitcoin hit new annual highs.