Grayscale Investments, a crypto fund manager, has managed to observe a staggering increase in its assets under management. In less than two weeks, the firm has managed to gain another $1 billion in BTC.
Increases Across The Board
This comes thanks to an update Grayscale posted on their Twitter account. As it stands now, the investment firm is holding a staggering $5.1 billion in assets under management, or AUM.
07/28/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@GrayscaleInvest) July 28, 2020
As it stands now, the majority of these funds are held in trusts for both Ethereum (ETH) and Bitcoin (BTC). This stands alongside the digital large cap of the firm, as well. Grayscale holds an array of other cryptocurrencies, as well, such as Ethereum Classic (ETC), Bitcoin Cash (BCH), Litecoin (LTC), Horizen (ZEN), XRP, Stellar Lumens (XLM, as well as ZCash (ZEC)
With all of these assets increasing, an increase of $1 billion in AUM is represented, having occurred in just 11 days. This comes by way of an update Grayscale had made on the 17th of July, 2020.
07/17/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@GrayscaleInvest) July 17, 2020
Crunching the numbers, BCH managed to gain the most out of this increase, percentage-wise, as it more than doubled in AUM from $6 million to $12.8 million. Grayscale’s ETH trust managed to gain $174 million, with its BTC trust gaining a staggering $782 million. As for LTC, and ETC, they’ve increased by $6.7 million and $12.7 million, respectively.
Speculation Of Buying More BTC Than Mined
Only the Stellar Lumens trust managed to experience a drop in this time, with its AUM going down to $500,000 as opposed to its previous measure of $600,000.
The investment firm currently holds a staggering $4.3 billion in AUM for Bitcoin. However, filings with the Securities and Exchange Commission (SEC) has shown that Grayscale itself wasn’t the one purchasing crypto, not since the 19th of June. On the 19th of June, Grayscale bought a staggering 19,879 in BTC. At the time, Grayscale was buying BTC faster than miners could produce blocks.
No New Ethereum In Grayscale, Says Watkins
Even so, it should be noted that Grayscale’s report coming from Q3 2019 shows something interesting: 80% of the inflows that the firm’s BTC trust experienced that quarter, came from BTC already in circulation, not those that were mined recently. Grayscale refers to these types of purchases as “in-kind” exchanges.
Messari, a crypto analytics firm, had Ryan Watkins give a statement in June. Watkins stated that these sort of exchanges means that Grayscale has more than likely been buying 31% of the new BTC mined since the 11th of May rewards halving. Watkins also stated that no new Ethereum was going into the trust at all.