Grayscale adds $3 billion in crypto to its fund in one week
- Grayscale has added $3 billion in cryptomoney to its portfolio.
- Grayscale added more than 12,000 BTCs in one day, 13 times more than the amount of BTCs extracted daily.
- Grayscale currently has $16.4 billion in cryptos assets under management.
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Grayscale, the world’s largest digital asset manager, offers cryptos-based investment trusts for Bitcoin, Ethereum, Bitcoin Cash and Litecoin. The company has Bitcoin Up added an additional $3 billion of digital assets to its total AUM (assets under management).
According to Jan Uytenhout, one of the co-founders of Capriole Investments, Grayscale has been busy. The company added 12,000 new BTCs in one day to its Bitcoin Trust. This cost nearly $280 million at current Bitcoin prices. It is 13 times more than the amount of new Bitcoin extracted in a day.
Grayscale temporarily stopped accepting new clients, but it looks like their existing clients are still quite hungry for more…
12k new bitcoin bought today. That is 13X the new supply today.https://t.co/TlnQpQjq6g pic.twitter.com/c2v1ZKt4DG
– Jan Uytenhout (@uytjan) December 22, 2020
Grayscale has temporarily stopped accepting new customers, but it seems that their existing customers are still hungry …
12k new bitcoins purchased today. That’s 13 times the new offer today.
Grayscale’s purchases continue at record levels
Grayscale is a digital asset manager. It holds the crypto on behalf of its investors, which allows them to gain exposure to the fluctuating price of cryptography. Most retail users would advocate owning and personally controlling any cryptography purchased. However, there are not many options for regulated investments in the cryptomarket.
Grayscale solves this problem with its variety of cryptomoney trusts. The company amasses extremely large amounts of Bitcoin, Ethereum and other cryptomoney trusts. Its Grayscale Bitcoin Trust currently holds more than $14 billion and its Grayscale Ether Trust has amassed nearly $2 billion.
Bitcoin recently broke all-time highs after earning more than 300% this year. Despite this, many wealthy people are still investing in Bitcoin. MicroStrategy recently purchased $650 million worth of Bitcoin at prices exceeding $21,000 by Bitcoin. MicroStrategy CEO Michael Saylor said that the company’s average purchase price is still hovering around $15,000 per Bitcoin. However, the company’s willingness to take on debt to invest in Bitcoin shows that it believes the BTC price will continue to rise. MicroStrategy is not the only major company supporting Bitcoin. PayPal, Mass Mutual, Square and others are investing or integrating blockchain technology into their organisations.
BTC as a hedge against inflation
2020 is coming to an end. It will be a year the world will remember for a long time. The problems that come with it will linger for a while. The spread of a global pandemic and increased global economic uncertainty have drawn many people to Bitcoin’s potential as a safe haven. America alone, with multiple stimulus bills, has pushed many towards an asset that they believe could bring some stability.
As Michael Saylor recently tweeted, „Whenever anyone questions our Bitcoin strategy, I always wonder what advice that critic would give to the 44 million people in Argentina“. Saylor followed this up with a graph comparing the exchange rate of Bitcoin to the Argentine peso.