Grayscale Now Manages $6.5 Billion Worth of Crypto

 

Grayscale’s Bitcoin Trust still comprises the lion’s share of the cryptocurrency investments managed by the company.

In brief


The total value of assets managed by crypto-focused investment company Grayscale has reached $6.5 billion for the first time.
$5.4 billion of those funds are concentrated in the Grayscale Bitcoin Trust (GBTC).
The company’s exchange-traded products generally underperformed in October, compared to the rest of the market..

The total value of assets managed by crypto-focused investment company Grayscale has reached $6.5 billion for the first time, the firm tweeted on Monday. The biggest of the company’s trusts by far—Grayscale Bitcoin Trust (GBTC)—currently exceeds $5.4 billion. As Decrypt reported recently, Q3 2020 became the best quarter in Grayscale’s history as the company attracted more than $1 billion worth of assets. In addition, year-to-date investment into the Grayscale family of products has surpassed $2.4 billion.

INSTITUTIONAL INVESTORS ARE INCREASINGLY LOOKING TO INCLUDE BITCOIN IN THEIR PORTFOLIOS.


Grayscale Now Manages $6.5 Billion Worth of Crypto”

According to Bitcoin Treasuries, publicly traded companies, including Grayscale, now hold a total of 785,999 BTC—worth around $9.18 billion currently. Recently, Stone Ridge also added to this pot, revealing that it holds $115 million in Bitcoin. Simultaneously, its crypto-focused arm, New York Digital Investment Group, custodies over $1 billion in crypto.

 

Notably, Grayscale trusts continued to grow over the past month despite the market somewhat slowing down, suggesting that the increase primarily occurred due to an inflow of new assets and not because of a price rally.

On October 12, Grayscale's Ethereum Trust became the second SEC reporting crypto trust fund—right after its own GBTC became the first. However, the company’s exchange-traded products generally underperformed—compared to the rest of the market—in October, according to CryptoCompare’s latest Digital Asset Management Review report, published yesterday.

SEC IS KEEPING A CLOSE WATCH ON CRYPTO

BITCOIN ATMS ENABLE THE USER TO BUY AND SELL BITCOIN


 

The US Securities and Exchange Commission today proposed to a New York court that messaging app company Kik should pay a $5 million fine for illegally holding a $98 million initial coin offering (ICO) for its crypto network, Kin. US District Court Judge Alvin Hellerstein sided with the SEC in its lawsuit against the Canada-based company at the end of September. Now, the SEC seeks to impose a penalty.

The proposed settlement, which is yet to be ratified by the judge, would require Kik to wire the SEC $5 million and give it 45 days notice before it starts another token sale. Five million dollars—that’s it. This settlement would not force Kik to return the $98 million it raised in its 2017 ICO to investors. The SEC filed the suit against Kik in May 2019. It alleged that its ICO constituted an illegal securities sale, which Kik hadn’t registered with the SEC. Kik vehemently denied this and argued that its token sale was not a securities sale, and that a purchase of Kin did not constitute an investment contract. People bought Kin tokens for their utility, not for speculative purposes, the company argued.