Grayscale’s Crypto Funds Grow by $1 Billion in Just 11 Days

Published at: July 29, 2020

Crypto fund manager Grayscale Investments has managed to increase its assets under management by another $1 billion in less than two weeks.

According to an update posted to Grayscale’s Twitter account on July 28, the investment firm currently has $5.1 billion in assets under management (AUM). The funds are mostly held in Grayscale’s trusts for Bitcoin (BTC) and Ethereum (ETH), along with the firm’s digital large cap fund. There are smaller allocations in Bitcoin Cash (BCH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC) 

Grayscale assets under management. Source: Twitter

This represents an increase of nearly $1 billion in AUM in just 11 days, according to a July 17 update from Grayscale. The firm more than doubled the AUM in its BCH trust, from $6 million to $12.8 million in that time. Grayscale added $782 million to its BTC trust, $174 million to its ETH trust, $12.7 million to its ETC trust, and $6.7 million to its LTC trust. 

The firm’s Stellar Lumens Trust was the only one with a drop in AUM, from $600,000 to $500,000.

No Bitcoin purchases in six weeks

Though the investment firm currently has $4.3 billion in AUM for Bitcoin, filings with the U.S. Securities and Exchange Commission show Grayscale has not purchased any of the cryptocurrency since June 19. On that day, Grayscale bought 19,879 BTC, which at the time appeared to indicate the firm was purchasing Bitcoin faster than miners could produce blocks. 

However, according to Grayscale’s report from Q3 2019, 80% of inflows that quarter to the firm’s BTC trust came from Bitcoin already in circulation — not from tokens recently mined. The firm refers to these purchases as “in kind” exchanges. 

Ryan Watkins of crypto analytics firm Messari said in June this meant that Grayscale was more likely buying just 31% of new BTC mined since the May 11 rewards halving. According to Watkins, no new crypto was going into the firm’s Ethereum trust at all.

Some trusts listed on OTC markets

Cointelegraph reported on July 17 that the Financial Industry Regulatory Authority in the U.S. had verified shares of Grayscale’s Bitcoin Cash Trust and Litecoin Trust were ready to begin being quoted in OTC markets. The two stocks will soon be available for public trading under the symbols BCHG and LTCN.

Tags
Bitcoin
Business
Investments
Grayscale
Related Posts
Investor Claims There's No Way to Cash Out From Grayscale's Bitcoin Trust
Qiao Wang — Investor, analyst and head of product at crypto market data firm Messari — raised major criticism about the way in which the Grayscale Bitcoin Trust, or GBTC, is set up. In a June 11 tweet, Wang cites Grayscale’s official website, according to which “Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time.” He suggested that the absence of a redemption mechanism can result in GBTC trading at a discount compared to the net asset value, or NAV, of the fund’s assets. “You are just donating your money to …
Etf / June 12, 2020
Grayscale’s Bitcoin Holdings Pass $3 Billion, Growing 76% Year-on-Year
Grayscale, a major digital asset management fund, has continued to grow this year, with its total assets under management, or AUM, hitting new highs. According to a May 19 tweet, Grayscale’s total AUM hit $3.8 billion, surging over 80% from $2.1 billion in May 2019. Bitcoin trust continues to gain momentum Grayscale’s Bitcoin (BTC) trust has continued to lead other cryptocurrencies in the fund, accounting for $3.36 billion, or 89% of the firm’s total AUM. The value of Grayscale’s Bitcoin investment trust surged 76% from last year’s $1.9 billion. At the same time, Grayscale’s Bitcoin trust’s share saw a small …
Bitcoin / May 20, 2020
Institutional demand for crypto isn’t subsiding, but impact will be gradual
For example, just last week, when the currency was hovering around the $30,000 threshold, a whole host of pundits was warning investors to brace for impact, suggesting that the premier crypto asset was on the verge of a correction and could once again dip to around the $20,000 region. However, in just one day, Bitcoin was once again playing with the bulls, retesting the $38,500 limit, only to witness a selloff and eventually settle around the $33,500 region. While for most crypto veterans that might have been another day at the office, others branded the upsurge as “Elon’s Candle,” which …
Bitcoin / Jan. 31, 2021
Bloomberg Analyst Gives a Simple Reason Why BTC Is Better Than Gold
Mike McGlone, Bloomberg’s senior commodity strategist, in his latest Bitcoin report remains bullish on the “first-born” crypto and points to the advantage it holds over its hedging rival gold: “Unlike quasi currency brethren gold, higher prices won't be an incentive for more supply.” Is BItcoin’s supply inelastic? McGlone alludes to the fact that in most commodity markets, greater demand leads to higher prices, which in turn leads to greater production of the commodity and price stabilization. However, Bitcoin’s supply is controlled with code. Moreover, the rate of production of new Bitcoin will be halved next week. Although an argument could …
Bitcoin / May 5, 2020
Controlling shareholders' stakes in GBTC are 'highly illiquid': Report
According to a new Twitter post by Ryan Selkis, CEO of blockchain research firm Messari, Grayscale Bitcoin Trust's (GBTC) controlling shareholders Genesis Global and Digital Currency Group cannot simply "dump" their holdings to raise more capital. Selkis explained that the restrictions are due to Rule 144A of the U.S. Securities Act of 1933, which forces issuers of over-the-counter, or OTC, traded entities to give advance notice of proposed sales, as well as a quarterly cap on sale of either 1% of outstanding shares or weekly traded volume. 2/ DCG bought nearly $800mm worth of GBTC shares since the premium flipped …
Blockchain / Nov. 28, 2022