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Grayscale Report Shows Evidence That Investors Were Regaining Trust in Crypto Market; GBTC Holdings Surge

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The cryptocurrency market’s resurgence over the past few weeks has kick-started significant asset movements on major exchanges. As the world comes to terms with dealing with life in quarantine, the market fluctuations represent the growing investor’s interest across the board.

Grayscale Investments, one of the largest and most popular cryptocurrency investment companies recently announced that over the past few weeks, the amount of holdings had increased steadily.  A calculation by the company showed that the total Assets Under Management had increased to a whopping $6.1 billion. 

According to Grayscale, a majority of the investments had flow into the Grayscale Bitcoin Trust. Bitcoin’s bullish performance over the past few had instilled confidence among its holders, who have brought into the market once again. The Bitcoin aspect of the trust amounted to $5037 million with a 3.2 percent increase on the daily. . The market price per share was calculated to be $14.75 percent while the holdings per share came to $11.6.

After Bitcoin, Bitcoin Cash held the major Grayscale repository with a $30.7 million hold in the trust. The BCH holdings per share were $2.94 percent with a 6.91 percent change every day. Bitcoin Cash’s volatility was one of the largest when compared to Bitcoin and Ethereum. Ethereum made up the the podium in Grayscale’s investment fund. The world’s largest altcoin had a total holding of $876. 6 million with a daily change of $1.61 percent. Ethereum’s market share held a healthy $83.9, which was the largest among its compatriots.

Grayscale’s Litecoin holdings were lesser than that of Ethereum Classic’s, Ethereum’s hard fork that has surprisingly made a positive impact in some areas. ETCG had a holdings per-share value of $6.64 while the daily change was 6.58 percent. At the same time, Litecoin’s Grayscale AUM amounted to $19.8 million at a daily rate change of 13.91 percent.

The Trusts by Grayscale are open-ended and sponsored by the company. Their main intention is to enable exposure to the price of movement of each trust’s underlying assets. This process avoids the challenges of storing, buying and safekeeping any of the aforementioned digital assets.

Bitcoin Expected To Receive More Institutional Investors as Grayscale Investments Gets Recognized By The SEC

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Cryptocurrency companies have been making a name for themselves in the past couple of months with several achieving mainstream status. One of the biggest winners in that category has been Grayscale Bitcoin Trust, the company that launched the famous “DropGold” campaign.

Just recently, Grayscale Investments announced that it has become an SEC reporting company. This comes two months after the company had filed a Registration Statement on Form 10 with the SEC on behalf of Grayscale Bitcoin Trust [GBTC].

Since its inception, Grayscale Bitcoin Trust has grown to become the world’s largest Bitcoin investment product. The company recently released a circular that addressed the organization’s plans for the future now that it was an SEC reporting company.

GBTC claimed that its main directive is to provide Bitcoin services to users without them having to go through the hassle of managing it. This includes challenges such as storing, buying and safekeeping Bitcoin on their own.

The way GBTC works is similar to that of financial and tax advisors, one of the reasons why it was accepted by the SEC. By becoming the first digital investment vehicle to be registered with the SEC, GBTC has broadened Bitcoin’s availability to all US investors.

GBTC’s SEC addition will also allow more institutional investors to get into the Bitcoin field. The entry of institutions was earlier reduced because of the lack of credibility in the eyes of regulatory authorities. According to the Grayscale Investment report:

“While the Trust has historically published quarterly and annual reports as well as audited financial statements pursuant to the OTC Markets Alternative Reporting Standard (ARS), the Trust will now file its quarterly and annual reports as well as audited financial statements as 10-Qs and 10-Ks with the SEC, along with current reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act.”

With the addition of the SEC’s structure, the trust is designed to have its share value reflect the performance of Bitcoin. The company will also have fewer expenses and other liabilities as it is “solely and passively invested in Bitcoin”. According to the report, GBTC will continue to not run the redemption program or trade on a national securities exchange.

The news was also shared by Coinbase Custody as Grayscale Investments was its client. The Brian Armstrong led company was confident that being part of the SEC was an incredible milestone for the entire digital currency market.