The size of the Bitcoin (BTC) fund of Grayscale Investments continues to grow. The asset manager has to deal with the rising dollar price of several crypt currencies, but also with more interest in the different funds. The total assets under management are as much as $12 billion!
Bitcoin (BTC) fund
By far the most popular product of Barry Silbert’s company is the Bitcoin Trust. As much as 83% of this $12 billion comes from GBTC – the Grayscale Bitcoin Trust. This means they manage over $10 billion of Bitcoin for customers.
Institutional investors who want to be exposed to the Bitcoin price can choose to buy a share in the fund.
One share currently costs around $17.99, so as an investor you do not have to worry about regulatory risks and the storage of private keys.
November this year is a good month for the American company. Since the beginning of the month, Bitcoin has risen by as much as 50%. In total, their assets under management (AUM) increased by $2 billion in one week.
Grayscale recently shared a report sharing the results of a survey among its investors (and therefore customers).
According to Grayscale, it is striking that they are looking for safe haven assets. They see crypto investor as a safe alternative in a world where there is a lot going on in the monetary field, as a reaction to the corona crisis.
Other crypt currencies
In addition to the Bitcoin fund, investors can also turn to Grayscale for exposure to Ethereum, Ethereum Classic, Litecoin, Stellar Lumens and a number of other crypt currencies. However, the combined size of these funds is only 17% out of a total of $12 billion.
Grayscale manages more than 500,000 BTC for GBTC, as can also be seen on the website bitcointreasuries. This means that they hold almost 2.5% of all BTC in circulation. However, this says nothing about the protocol itself: the number of bitcoin that you own does not necessarily give you extra power to change something about Bitcoin.
In Ethereum and other (future) Proof-of-Stake cryptocurrencies it does. Bitcoin uses Proof-of-Work, which means that only miners with processing power can process transactions.