Victor Ugochukwu · Dec 14, 2020 . 5min read
Grayscale Bitcoin Fund witnesses largest weekly inflow
Interest in Bitcoin and Ethereum rises as Grayscale Bitcoin Fund (GBTC) witnesses the largest inflow of about $215 million in last week.
By Komal Joshi · Nov 4, 2020 . 6min read
Grayscale’s Bitcoin fund (GBTC) witnesses the most massive inflow of about $215 million in the week ending on Oct. 29. Focusing on institutions, the uptick indicates a continued desire for crypto among conventional financial players. The Grayscale Bitcoin Trust is a financial institution that allows investors to trade shares in trusts containing large pools of Bitcoin. Grayscale also provides various other exchange-traded products, tracking Ethereum, BTC Cash, and Litecoin, among others.
Grayscale’s Bitcoin, Ethereum funds draw institutions.
Grayscale Investments LLC provides accredited investors the chance to fund digital currencies through share indices supported by digital assets. GBTC shares design Bitcoin holdings in the trust fund. Additionally, the trust appends Bitcoin equivalent to the share value published by the investment fund. Last week, GBTC added 15,907 BTC worth $215 million, reaching a steady rise in the number of shares issued. The total GBTC now under management is $6.7 billion (481,711 BTC).
Asides Bitcoin, the firm also provides investment in other cryptocurrencies such as Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic, Zcash, Stellar Lumens, XRP, and Horizen. Moreover, Grayscale’s Ethereum fund (ETHE) has also revealed a continuing rise in investment since April 2020. The fund added 75,419 ETH worth $28.5M to its treasury yesterday, extending ETHE AUM (Asset under management) to $914.9M.
Ethereum manages other altcoins with 12% of the total AUM, GBTC estimates for 86.6%. Provided that investment in Grayscale’s product is only restricted to accredited investors, the growing GBTC and ETHE shares register confident institutional inflow.
Recently, Grayscale published its second Bitcoin Investor Study. According to the study, U.S. investors that were interested in funding in BTC had increased from 36% in 2019 to 55% in 2020. Moreover, Grayscale holds much more Bitcoin than any other listed company.
Earlier, Grayscale has crossed the $7 billion mark in total assets under management. The largest institutional fund in BTC and cryptocurrencies have been nothing, however, beyond awesome this year amidst the severe market probe owing to the Covid-19 pandemic.
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