Victor Ugochukwu · Dec 14, 2020 . 5min read
Grayscale’s Bitcoin Trust amounts to 87.5% of its $10.4 Billion Asset Under Management
Grayscale’s Bitcoin Trust Product (GBTC) now sits at $9.1 billion. That is at least 87% of all its asset under management
By Victor Ugochukwu · Nov 18, 2020 . 5min read
While Bitcoin is showing a parabolic movement in the price for some time now smashing one price milestone after another, Grayscale appears to be the one smiling the most as its Bitcoin Trust represents its $10.4 billion total assets under management.
The largest private firm holder of Bitcoin recently disclosed its AUM when it tweeted the image showing the round number 10.
The hedge fund was established in 2013 and has since grown to become the largest private holder of Bitcoin in its BTC Trust. Pursuing making crypto services easy to institutional clients who appear to have caught the “Bitcoin fever” lately, Grayscale now controls 509,581 BTC as part of its Cryptocurrency Trust.
CryptoCompare, a cryptocurrency intelligence and analytics firm, reported that demand for Grayscale’s Bitcoin Trust surged by 56% in the last month. And as Bitcoin quickly moved from $15K region and now above $18K, Grayscale topped up its Bitcoin holdings. Currently, Grayscale’s Bitcoin Trust Product (GBTC) now sits at $9.1 billion. That is at least 87% of all its asset under management.
Another asset under management for Bitcoin is Ethereum at $1.2 billion. Surprisingly, it holds $69 million in Ethereum Classic even with the recent horrifying ETC hacking incidents. Litecoin is next at $58 million, $46 million of Bitcoin Cash after losing out on this, $9.8 million in XRP.
Grayscale Bitcoin Trust and other Cryptocurrency Trusts means OTC issuance is a certain percent of an investor purchase.
Whenever an investor purchases a Trust offered by Grayscale over the counter, it is usually with a premium. Say, for instance, the GBTC market price is $20.16 the actual Bitcoin held is around $16.42.
The premium the investor will normally pay is for value-added services like the security and guarantee Grayscale offers. This is most especially to institutional clients who may need to adhere to strict regulatory standards while investing in cryptocurrencies.
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