The Surprise Bet to Beat the Coronavirus Bear Market

The coronavirus pandemic has been a human tragedy, and it’s also had major impacts on the financial markets. Even though stocks have recovered somewhat from the worst depths of the coronavirus bear market, they’re still substantially below their highs from just a couple of months ago. Many investors expect times to get worse rather than better in the months to come, and few believe that a quick turnaround is likely.

Given the market volatility, many investors are looking for ways to diversify their portfolios while still positioning themselves for a rebound if conditions improve. Many are paying closer attention to traditional safe havens like gold, whose price has climbed to levels not seen since the early 2010s.

Another investment that many mainstream investors have largely forgotten about has also regained some of its popularity. That investment is cryptocurrency, and one asset manager that focuses on crypto tokens reported record interest in its most popular investment opportunity within the space.

Wall Street sign in front of New York Stock Exchange.

Image source: Getty Images.

Grayscale shows investors the money

Grayscale Investments has been a pioneer in digital currency asset management, and its Grayscale Bitcoin Trust (OTC:GBTC) has become one of the most direct ways to invest in the leading cryptocurrency. The trust owns about 307,000 bitcoin tokens at last count, and every 1,000 shares of the trust corresponds to an effective ownership interest of just under 1 bitcoin.

Grayscale reported earlier this week that it has seen more than $500 million pour into its family of cryptocurrency-related investment products, with almost $390 million of that moving into Grayscale Bitcoin Trust. Similar investments tied to the value of ethereum and a basket of other crypto tokens have also seen dramatic inflows.

The company said that…

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