Six giant insurers acquired shares of cryptocurrency funding merchandise provided by Grayscale Investments, based on an S&P International Market Intelligence report.
The insurers didn’t instantly buy bitcoin or one other cryptocurrency, however the funding merchandise derive their worth from shares of Grayscale Bitcoin Belief or Grayscale Ethereum Belief. Grayscale is a unit of Digital Forex Group, CoinDesk’s dad or mum firm.
Traders should buy shares in a personal placement transaction after which promote them on the secondary market following a holding interval. Retail and institutional traders can then purchase shares on the over-the-counter market. The trusts use revealed CoinDesk indexes to trace cryptocurrency costs.
Grinnell Mutual Reinsurance and Donegal Mutual Insurance coverage, a subsidiary of Atlantic States Insurance coverage, made their first strikes in February, buying 18,000 and 20,000 shares, respectively. Grinnell paid $968,000 for its shares.
Georgia-based State Mutual Insurance coverage Co. was the one insurer to initially buy shares of each the Bitcoin and Ethereum funding merchandise. The mutual insurer acquired 13,000 shares of Bitcoin Belief and 9,000 shares of Ethereum Belief for about $491,000 and $141,500, respectively.
Insurance coverage firms have lately ramped up their curiosity in cryptocurrency investments. In December 2020, Massachusetts Mutual Life Insurance coverage Co. bought $100 million of bitcoin and made a $5 million fairness funding in New York Digital Funding Group LLC.