Grayscale holds $25 billion worth of Bitcoin in its main fund

Karthik Subramanian

Grayscale, one of the largest cryptocurrency-based asset management firms, has announced an update on its holdings which show that it holds $25 billion worth of bitcoin in its main fund.

Grayscale has been buying and selling a lot of cryptocurrencies since its inception and many times, the funds have been oversubscribed whenever the prices of cryptos rise and the interest shoot up among retail and institutional investors. At its peak, the bitcoin fund had over $53 billion under management.

But it has reduced over the last few months due to a combination of prices of bitcoin falling by around 40% during this period and also due to the fact that some investors, who could not digest the volatility, also bailing out though this has not been confirmed by the company.

The next biggest fund at Grayscale is the Ethereum Trust which is based on ethereum holdings and this fund has over $8 billion in management at this point in time. Like the other funds, the value of this fund also varies widely depending on the volatility in the prices of ethereum.

Though the company has other funds based on other cryptocurrencies, bitcoin and ethereum funds are the biggest ones by far and this reflects their fundamentals and also on how investors view these two cryptocurrencies.

The size of these funds is also an indicator of the amount of interest in this industry from the investors and it is only going to grow as the prices recover and the interest comes back. For now, the market is a bit dull, by its standards, and this can be seen in the amount of interest surrounding cryptos.

Like Grayscale, there are also other companies coming up that are based on crypto asset management and we are also seeing almost all major asset management companies delegating part of their assets into cryptos as they do realise that it is likely to emerge as a strong investment asset and hence needs to be part of any portfolio just like stocks and FX as well.

This is the kind of recognition that the crypto world has been looking for and this thought has been slowly gaining traction over the last couple of years and is only bound to grow. The asset managers may also look to diversify their holdings beyond bitcoin and ethereum in due course of time and it remains to be seen which cryptocurrency would be able to scoop up the bulk of that new interest.

Read this next

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets enables Shopify merchants to accept crypto payments has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.