Crypto fund manager Grayscale now holds over $10 billion worth of Bitcoin and other cryptocurrencies on behalf of its clients, it said in a tweet yesterday. The firm was launched in 2013 and is one of the first players to offer crypto-focused services to institutional clients.
Bitcoin’s parabolic move in the past few weeks has caused Grayscale to increase its holdings of the asset—and the value of them. As per a report by crypto research firm CryptoCompare, the firm’s Bitcoin Trust Product surged by 56% in the past month to its current $9.1 billion market cap. This represents 87.5% of its assets under management. The product also saw a record $215 million in weekly inflows over the last month, the report added.
Grayscale’s other crypto holdings, as per an official release, include $1.2 billion worth of Ethereum, $69 million of Ethereum Classic, $58 million in Litecoin, $46 million of Bitcoin Cash, and a much smaller $9.8 million in XRP.
All these are offered to clients via the firm’s “Trust” products, an over-the-counter issuance that represents a certain amount of that altcoin in each “share” purchased by an investor.
For example, the firm’s Grayscale Bitcoin Trust (GBTC) offering has a market price of $20.16 and holds $16.42 worth of Bitcoin as part of that. The remaining amount is a small “premium” for the convenience and security offered to customers, as opposed to buying