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

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”