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$1 Billion Added to Grayscale this Week

$1 Billion Added to Grayscale this Week

Renowned crypto fund manager, Grayscale Investments has managed to increase its assets by $1 billion more in the period of just one week. On October 22nd, an update was posted via Grayscale’s Twitter account, which disclosed this increase in assets. According to the firm, the total assets under their management have now reached $7.3 billion, which is exactly $1 billion higher than the total assets recorded on October 15th, 2020. However, it should also be noted that as the reports are usually delayed by 24 hours, it means that the figures that were published were for the day before. 

As far as the funds are concerned, the company holds them in the Trusts for Bitcoin (BTC) and Ether (ETH), respectively, which has also added to the large-cap fund of the company. This recent increase in the assets under management at Grayscale is most likely because of the surge in prices that happened in the crypto markets quite recently. This huge market surge occurred because of the announcement by PayPal that it will be introducing its own crypto payment services in the coming year. As far as proportional growth is concerned, Grayscale highlighted that most of its growth was seen by its Trust for Litecoin (LTC), as compared to the previous report.

It showed a growth of 7.5%. During the same time period, there was an increase of 6% in the company’s Trust for Zcash (ZEC). It highlights the fact that the company also has chosen to opt for small supplies of other coins for its assets under management. Some of these coins include Bitcoin Cash, Stellar Lumens (XLM), XRP, Ethereum Classic (ETC), and Horizen (ZEN). The CEO of Grayscale, Barry Silbert also commented about the matter. He said that the company had managed to increase its assets under management by getting nearly $300 million in just one day, which is quite ‘cool’. 

As far as Grayscale’s Bitcoin Trust is concerned, the company reportedly holds approximately 2.5% of the total supply of the leading coin circulating in the market. As per the data provided by CoinMarketCap, the company has a total of 18,522,937 BTC, whereas the total supply of Bitcoin will never go in excess of 21 million. As of now, only 2.5 million Bitcoin is left to be mined, which is approximately 11.9% of the total Bitcoin that will ever be generated. One thing to note is that Grayscale is not the only company that has realized the massive potential of cryptocurrencies. 

Other major financial institutions have also come to realize it and one of the more prominent ones is MicroStrategy. The company has acquired Bitcoin worth $415 million in this year. According to Coin98 Analytics, a digital asset manager known as CoinShares is holding around 69,730 BTC. This is valued at more than $900 million after Bitcoin’s price exceeded the $13,000 today. This interest doesn’t seem to be waning any time soon, as the cryptocurrency market is recovering rapidly after the disaster it had to face back in March due to the COVID-19 pandemic.

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