Largest crypto investment manager tops $10 billion in assets:

Largest crypto investment manager tops $10 billion in assets:

  • Uncategorized
  • Dec 01, 2020

The world’s largest digital currency asset manager Grayscale said on Wednesday its assets under management soared to a record $10.4 billion, bolstered by the continued rise in investment inflows as well as the surge in the price of bitcoin. Bitcoin on Wednesday jumped to $18,483 BTC=BTSP, the highest level since December 2017. It has appreciated about 160% this year and gained 17% in the last three days.

The virtual currency is now close to its all-time peak of just under $20,000 at the height of its retail investor-fueled 2017 bubble. Grayscale’s assets grew 76% from $5.9 billion at the end of the third quarter. Its bitcoin fund hit nearly $9 billion in assets on Wednesday, up 85% from that in the third quarter. The investment manager recorded it largest-ever inflows of more than $1 billion in the third quarter, according to its quarterly update. From the beginning of 2020 to the third quarter, investments into Grayscale reached $2.4 billion, more than double the $1.2 billion cumulative inflows into its funds from 2013-2019. “While we’re only midway through the fourth quarter, I can certainly share that momentum has continued to carry through to the fourth quarter and probably accelerated a bit to what we have seen in Q3,” Michael Sonnenshein, managing director at grayscale told Reuters in an interview. The bitcoin fund represents about 80% of the assets it manages.

The market for bitcoin has matured and he expects a steady climb in its price, noting a much more two-sided trading space with the development of ancillary services such as derivatives and cryptocurrency lending. For a lot of investors, bitcoin has a lot of staying power and it has overcome so many challenges and so many instances when it has been called dead, Sonnenshein said. Its next largest fund the Grayscale Ethereum Trust posted assets under management of $1.2 billion on Wednesday, up more than 50% from $806 million at the end of the third quarter.

The bitcoin fund represents about 80 percent of the assets it manages. It is said the market for bitcoin has matured and he expects a steady climb in its price, noting a much more two-sided trading space with the development of ancillary services such as derivatives and cryptocurrency lending. For a lot of investors, bitcoin has a lot of staying power and it has overcome so many challenges and so many instances when it has been called dead. Its next largest fund - the Grayscale Ethereum Trust posted assets under management of US$1.2 billion on Wednesday, up more than 50per cent from US$806 million at the end of the third quarter.


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