Bitcoin

Bitcoin Price Boosts Grayscale Digital Asset Fund to Over $1 Billion

Emilio Janus | Apr 03, 2019 | 12:00

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The world’s largest cryptocurrency asset manager, Grayscale Investments, saw its value of Assets Under Management (AUM) top $1 Billion yesterday. Price gains across the crypto spectrum saw the value of Grayscale’s bitcoin holdings alone jump to $999.1 Million.

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Grayscale tweeted to announce the milestone, publishing a breakdown of individual products, and a headline value of $1.1 billion. Actually totalling individual quoted product assets yields $1.0609 billion, so perhaps there was also some rounding in play.

“Grayscale’s assets under management grew to over $1 billion today,” noted Bitcoin investor and Grayscale CEO, Barry Silbert.

As seen in the chart, the vast majority (nearly 95%) of the assets lie in the Grayscale Bitcoin Trust. Bitcoinist reported this tendency towards Bitcoin-maximalism earlier this year, and if anything it seems to have increased.

Other than bitcoin, the most significant holdings are in the Ethereum, Ethereum Classic, and Cash trusts, and the Digital Large Cap Fund.

What A Difference A Day Makes

Of course, that was yesterday.

At time of press, bitcoin price has seen further impressive 24-hour gains once again retest the $5,000 mark. Accordingly, shares in the Grayscale Bitcoin Trust (GBTC) closed at $5.74, up from $4.71. Each share is worth just under 1 mBTC (0.98409), although actual share price fluctuates with the market.

A quick (and very rough) ready-reckoning, suggests that holdings per share in the GBTC are now around $4.88. This brings the assets under management value for just this product to more than the entire cross-currency holdings yesterday ($1.0622 billion).

Who knows where tomorrow will take us?

Crypto-Thaw Crowns A Record Year

The recents signs of a potential end to the long crypto-winter are the icing on the cake of a record 2018 for Grayscale. Despite (or perhaps because of) crypto’s massive price crash from its late 2017, Grayscale continued to find investment figures climbing.

In December, research from Diar suggested that Grayscale had been quietly accumulating over 1% of Bitcoin’s circulating supply. Despite a slight drop-off in investment during Q4, the company posted record inflow levels for the year.

Will 2019 be a good year for Grayscale’s portfolio? Share your predictions below!

Images vis Shutterstock, Grayscale