Grayscale are a trusted digital asset management company. Think of the regular asset managers with big hedge funds, but Grayscale only deal with cryptocurrency and digital assets.
Very smart, if you ask me.
So why does everyone go a little crazy when grayscale release their quarterly statement or invest in new projects?
Well, when you take a look at their assets under management (AUM), effectively means how much of investors money they are being trusted with, you will see they are holding some of the biggest bags out there…
This is from 17 March 2021 and yes you read that correctly, that is 36,696 million, or 36.696 billion dollars worth in their Bitcoin trust (BTCB). More on this in a second.
They currently hold around 3% of all Bitcoin supply making them one of the biggest whales out there. Possibly the biggest apart from Satoshi which is around 1.1 million BTC to Grayscales 600,000ish.
So you can now see why people get excited about Grayscale investing in a project they are also invested in.
The sheer size of the positions that Grayscale take are enough to drive the price of a project. This also gives a lot of credibility to the project.
But aren’t cryptocurrencies technically an unregulated and non-security market?
Well, yes you are correct in thinking that, that’s where the Grayscale Trust comes in.
The trusts allow digital assets to be taken into the regulated markets. Grayscale operating in the US need to report to the SEC.
So how do they do that with cryptocurrencies that the SEC notoriously hate?
Take Bitcoin for example.
Grayscale hold around 600,000 in their Grayscale Bitcoin Trust. The trust then has security assigned to it known as GBTC, effectively Grascale BTC.
1 share of GBTC gives you (at time of writing) $53 worth of BTC, this fluctuates depending on Bitcoin price and also the amount of Bitcoin Grayscale hold.
So why, don’t investors just buy Bitcoin themselves and save all the hassle?
Well, it isn’t retail investors who are investing in GBTC, it is institutional investors and treasuries who are wanting their assets and holdings managed for them.
Just as you may pay into an investment for your pension or 401K, this is then managed by a wealth management company, in the hope, they give you some decent returns by the time you are ready to retire…
Grayscale offer this in a regulated way and report to the SEC but for cryptocurrencies and *higher* risk investments.
The only high risk in my opinion is not owning any… Not financial advice.
You wouldn’t go to Grayscale with $100 and ask them to invest in their fund that would be silly, you would just buy $100 Bitcoin with THIS LINK.
Additionally, institutional investors are using Grayscale as a custodian or a place to safely store their and their client’s assets. They don’t have to worry about it.
So what else do Grayscale invest in?
Well, interestingly enough yesterday Grayscale released their new approved funds which included Chainlink (about time), Decentraland, Basic Attention Token, Filecoin and Livepeer.
Holders of these coins were very happy to hear the news as this opens the door to big institutional money and that drives price demand higher.
Grayscale also have a diversified asset fund that seeks to hold assets that comprise 70% of the total cryptocurrency market. This is roughly the top 10 cryptocurrencies removing a few stablecoins and oddly placed projects… no names mentioned.
So wouldn’t it be great to be able to monitor what they are up to and be able to invest in these projects all from one single screen?
Glad you asked…
AAX exchange has dedicated a page on their site to the “Grayscale Zone”. This is a one-stop-shop for buying and selling assets that are currently managed by Grayscale. Very smart indeed.
So if you are like a lot of people who can’t really be bothered with the hassle of searching around for the best projects out there, you can leave it to the professionals and use AAX to provide you with all the information.
If you are yet to sign up to AAX, we have a great working partnership with them and you can sign up to receive discounted trading fees using this link or by using the QR code below.
As you can see there are all the assets currently held by Grayscale and the option to trade them on this platform.
There are a few like MANA that isn’t yet available to trade as Grayscale only announced yesterday they will be opening this fund. But, be sure to check back in a few days or so and this should be available, I can imagine.
The total AUM for Grayscale is displayed at the top of the list.
And as you can see, when you scroll to the bottom you will see the amount of Bitcoin Grayscale hold and how that changes over time.
This really is a great and hasslefree way to be able to invest in cryptocurrencies that are going to go the distance.
So if you want to invest like grayscale without the fees, you can do so now by signing up to AAX with this link or by scanning the QR code!
We hope this helps and has been useful. If you have any questions just get in touch and we will be more than happy to help. Please remember to sign up using the referral links to help support our platform.
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