CoinTrust

Value of Cryptos Managed by Grayscal Crosses $5.10bln

Cryptocurrency fund Grayscale Investments has recorded a sharp increase in the value of assets under management (AUM) in a matter of two weeks. As per a tweet by Graysale, the fund now manages assets worth $5.10 billion, an increase of $1 billion in the aforesaid time period.

By and large, the institution’s Trusts for Ether (ETH) and Bitcoin (BTC), in addition to digital large capitalization fund, holds a major portion of the funds. Furthermore, the fund also have made small investments in Stellar Lumens (XLM),Litecoin (LTC), XRP, Bitcoin Cash (BCH), Zcash (ZEC), Ethereum Classic (ETC) and Horizen (ZEN).

To be precise, the increase in AUM by $1 billion has happened in exactly 11 days, as per a media release by Grayscale. A breakup of the investment indicates that the fund more than doubled the assets under management in BCH Trust ($12.80 million vs $6 million). Likewise, Grayscale saw inflows in BTC Trust increase by $782 million, while ETH Trust recorded an increase of $174 million.

ETC Trust and LTC Trust saw investments increase by $12.70 million and $6.70 million. Notably, the firm’s Stellar Lumens Trust saw a decline in AUM, from $600,000 to $500,000.

Even though the fund has $4.30 billion worth Bitcoins under management, recent US SEC filing indicates that Grayscale has not bought any crypto since June 19. In the same day, Grayscale purchased 19,879 BTC, making crypto enthusiasts and analysts believe that the firm was purchasing the king of crypto faster than the time taken by miners to produce blocks.


Nevertheless, as per data provided by Grayscale on Q3 2019, 80% of inflows represent Bitcoin’s which are already in circulation and not newly minted ones. The fund points such purchases as “in kind” exchanges.

Ryan Watkins, representing cryptocurrency analytics company Messari, has pointed out that Grayscale was nearly purchasing 31% of fresh BTC mine since the third halving of rewards began in May11. As per Watkins, the fund did not invest in Ether since Bitcoin halving event took place.



Notably, the US Financial Industry Regulatory Authority has approved the listing of Grayscale’s Bitcoin Cash Trust and Litecoin Trust in OTC markets. Both assets will be offered for trading soon under the ticker BCHG and LTCN.

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