Funds Investing In Cryptocurrencies Flock To Grayscale
Grayscale Investments has seen an important number of hedge fund investing in digital currencies, showing the appetite these fund managers have for cryptos. The responsibility of having to take care of these cryptocurrencies is one of the main factors that keep away institutions and other funds from holding virtual currencies.
The truth is that hedge funds do not want to miss out a new bull run in the cryptocurrency market. They want to participate in the next price increase that may happen in the crypto world. This is one of the main reasons why they have decided to place their funds into Grayscale’s investments trusts.
According to a report that Grayscale Investments unveiled in July, $250 million have been raised by the company during the first half of the year. But it is also important to mention that this great number has been registered even when the top-performing product experienced a loss of over 50%.
Most of the funds this year came from two dozen hedge funds that manage between $1 to $10 billion dollars of assets. The information has been shared by Michael Sonnenshein, managing director at Grayscale.
Sonnenshein explained that there are some clients that have very specific request such as the intention to buy virtual currencies with gold. Other customers are concerned that blockchain technologies will devalue industries to which they are exposed in his investments.
Just some weeks ago, Business Insider informed that Coinbase has added a $20 billion dollars hedge fund manager as a client to its platform for institutional investors.
Grayscale entered the market in 2013 and was founded by Barry Silbert, which is part of his Digital Currency Group. Back in May, Grayscale hired Rayhaneh Sharif-Askary in order to run sales efforts. She is a former director at UBS and has been working with many different financial products. Another important employee hired was Samantha McDonald, former chief financial officer of SPDR Gold ETF.
Grayscale wants to make all the funds available for public over-the-counter trading. They are now offering two funds, Bitcoin Investment Trust (with assets of $1.1 billion dollars) and the Ethereum Classic Investment Trust (with $63 million dollars). The other six funds will be publicly traded later this year and during the nex tone.
At the moment, Grayscale is one of the most important crypto-focused asset managers. And it wants to become even larger. Even when most of the funds of the company are single-asset vehicles, the firm is considering other offerings in the future.
Grayscale’s vehicles use different crypto service providers including Ledger, Zapo, Genesis Global and more. Some investors in cryptocurrency include Bain Capital, Foxconn, MasterCard, Prudential Financial among others.