Grayscale Hits $10 Billion in Assets Under Management
According to a recent post, cryptocurrency hedge fund Grayscale Investment now holds Bitcoin worth about $10 Billion. The report reveals that the major hedge fund has more than 500,000 Bitcoin in its fund.
This is little surprise for anyone in the cryptocurrency space. Grayscale has been purchasing Bitcoin and Ethereum in large quantities. In previous quarterly statements it revealed that the hedge fund purchased nearly 2/3rds of all newly mined Bitcoin.
“Grayscale Bitcoin Trust now holds more than 500,000 $BTC. Yes, you read that right,” the tweet reads.
With this news, it means the crypto investment hedge fund will give institutional investors good exposure to a wide range of cryptocurrency products such as Bitcoin (BTC), Ethereum (ETH), Zcash (ZEC), Horizon (ZEN), Stellar (XML), Litcoin (LTC), Ethereum Classic (ETC) as well as Bitcoin Cash (BCH).
The rush for cryptocurrency assets by institutional investors is a result of the high level of performance for these digital currencies. Crypto assets have been outperforming other financial assets, especially this year when the impact of the pandemic has slowed the economic pace in most countries.
Institutional investors are leaving no chance to see that they acquire as many crypto assets as they can, in anticipation of a much bigger return in the future.
But the massive investment made by Grayscale Investment caught almost everyone by surprise, acquiring such a huge collection of Bitcoin within few months.
Grayscale provides high net worth individuals with alternative investments. Its role is to help the high-end investors protect their investment portfolios against market uncertainty while yielding positive returns from their investment despite market movements.
As the world is still feeling the heat of the economic implications of the pandemic, mainstream financial assets have increasingly become riskier than usual.
Hedge funds and institutional investors have been speeding up their diversification which have included ever increasing stakes in available crypto assets.
On a similar note, investors are looking to secure their investment portfolios by investing with hedge funds who are willing to pay a premium to purchase and manage the crypto funds.
As a traditional investment vehicle, Grayscale provides a solid structure for tax and financial advisors, while holding shares titled in the investor’s name.
Founder and chief executive officer of Grayscale, Barry Silbert, disclosed the firm’s holdings on Twitter yesterday.
The firm said it held about $7.6 Billion worth of Bitcoin as of October 30. A few days ago, that became $9.8 Billion. But that amount has risen to $10.4 Billion, making Grayscale the hedge fund with one of the largest holdings of Bitcoin.
Upward Trend is Major Cause of Growth
All cryptocurrencies have been in an upward trend this month, which is the major reason behind the rise.
But Grayscale also received inflows recently, which added to the holdings. Just last week, Michael Sonnenshein, the managing director of Grayscale, tweeted that the company has received a $262.3 Million inflow.
The funds are held in a diversified fund and across nine-single-asset investment trusts.
While most of the shares in the investment vehicles are traded publicly on the over-the-counter market, some of them are offered to accredited investors directly.
Grayscale is owned by Digital Currency Group. Other holdings in the crypto space include CoinDesk.