Wednesday, November 18, 2020

Institutional Crypto Fund Manager Grayscale Holds $10.4 Billion of Bitcoin and Cryptocurrency

 From Decrypt:

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....


Talking about this stuff as if it were an asset class is reminiscent of your friendly neighborhood Goldman salesman, fifteen years ago pitching swaps to piggyback on the GS traders being classified as "commercials" and thus allowing CalPERS et al to skirt "speculator" position limits.

You don't hear much about commodities as an asset class anymore, or the long-only funds the banks were creating for the institutions.

All of which probably means they're due for a comeback.