The world’s biggest crypto hedge fund manager Grayscale closed 2020 with a whopping sum of $20 billion under its management.
Grayscale, whose publicly-traded crypto assets offer rich investors the chance in trading crypto on the equity market, had its crypto holdings gain ten times since the start of 2020.
Most of the massive holding of the crypto hedge fund juggernaut includes $17.4 billion held in Grayscale Bitcoin Trust. That said, also soaring Bitcoin’s in prices helped the hedge fund hit $20 billion by the end of 2020.
12/31/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) December 31, 2020
Bitcoin lately struck a new all-time high on New Year’s day of just over $29,500.
- One of the key advantage crypto investors have accessing trusts like Grayscale’s are they can trade their crypto trusts on the stock market, which is useful for people wanting to trade from tax-sheltered accounts.
Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors’ name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws.
- The Trust has seen its assets under management (“AUM”) surge from $1.9 billion to $20 billion YTD.
- Grayscale Bitcoin Trust does not operate a redemption program and its shares do not trade on a national securities exchange.
What you need to know about Hedge Funds; They are firms that offer alternative investments to a specific type of investors (high net worth individuals), in a bid to protect their investment portfolios from market uncertainty, while generating positive returns regardless of market sentiments.
2,450 investors own 1000 BTC +, not willing to sell their Bitcoin
Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from the exchange
The number of investors owning at least 1,000 BTC is growing at a record pace. Data retrieved from Glassnode show that the number of addresses holding at least 1000 BTC has skyrocketed lately.
- The growth from January to December last year: 6.7%
- The growth from December until today: 7.2%
The number of addresses holding at least 1000 BTC has skyrocketed lately.
The growth from January to December last year: 6.7%
The growth from December until today: 7.2%
Read more in our weekly report tomorrow: https://t.co/xlQH8LeQyH
— Arcane Research (@ArcaneResearch) January 18, 2021
On the chart pattern, the number of addresses owning such amount of cryptos was about 2,450.
What this means
Large crypto entities could be envisaging a strong medium to long-term Bitcoin price trend, and are choosing to hold on to BTC in expectation of a bull market.
- Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from the exchange. Apparently, this is not new wealth – rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.
- At the time of drafting this report, Bitcoin traded at $36,534.77 with a daily trading volume of $53.2 Billion. Bitcoin is up 4.20% for the day.
In addition, another key point helping Bitcoin prices to remain supported between the $34,000-$37,000 price levels in recent days, is that a significant amount of long-term investors in Bitcoin are not nervous amid the prevailing volatility in play as revealed by Glassnode.
Bitcoin reserve risk is still very low. This means that there is high confidence in long-term HODLers relative to the current price. In red, the price is high and the confidence is low. Yes, a $37k Bitcoin is…cheap.
#Bitcoin reserve risk is still very low. This means that there is high confidence of long-term HODLers relative to the current price.
In the red, the price is high and the confidence is low. Yes, a $37k #Bitcoin is…cheap.
— Jared Hornmatter (@jaredhornmatter) January 18, 2021
Nairametrics is of the opinion that the increased buying pressures by such crypto investors are significantly responsible for Bitcoin staying supported above $35,000.
List of cryptos likely to overtake XRP
Michaël van de Poppe as recently listed some Crypto assets that might likely overtake XRP as Polkadot did
A highly revered crypto strategist, Michaël van de Poppe, has listed some crypto assets that might likely overtake XRP as Polkadot did.
What you should know
Recently, via his Twitter handle, Michaël revealed the cryptos expected to surpass XRP.
“Polkadot takes over spot 4 over XRP by market capitalization. Just a matter of time before Cardano, Chainlink, and Litecoin surpass XRP too.”
— Michaël van de Poppe (@CryptoMichNL) January 16, 2021
Michaël van de Poppe gave key insights on Chainlink’s recent price action, and its will to ascent to a new all-time high.
- “Lower timeframe levels, level around $18 is interesting for an entry and then you can see we’ve got one [at $16] and one [at $14], which is confluent with the daily timeframe.”
- Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs.
- Since blockchains by principle can’t have access to data outside their paths or networks, a Defi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.
The crypto expert further disclosed that it was only a matter of time before smart a contract platform like Cardano (ADA), decentralized oracle network Chainlink (LINK), and global payment network, Litecoin (LTC), outmatched XRP from the fifth spot of the largest coins by market value.
- Cardano is a type of blockchain that permits people to receive and send funds.
- ADA coin is the name of the cryptocurrency.
- It uses the Cardano blockchain and also allows people to design smart contracts just like Ethereum.
- Litecoin is a P2P crypto that allows instant, near-zero cost fees to anyone around the globe. It is open-source in principle, as its global payment network is fully decentralized without any central authority.
4 cryptos gain over 400% in a month, far outperforming Bitcoin
Ramp Defi, Telcoin, Parsiq and DeFiChain have had their value surge by more than 400%.
Four crypto assets have had their value surge by more than 400% while significantly outmatching the flagship crypto asset, Bitcoin, amidst a relatively bullish trend in play.
CryptoDiffer, a crypto information company, disclosed such data on its Twitter feed.
— CryptoDiffer (@CryptoDiffer) January 15, 2021
Staking platform, Ramp Defi (RAMP), had rallied by more than 465% for the last month by January 15th, coupled with outperforming Bitcoin by 5 times.
The crypto asset traded around $0.04 on December 16th before exploding to an all-time high of $0.28 on January 13th, according to Coinmarketcap.
- Telcoin (TEL) is the second crypto-asset on the list printing monthly gains of about 418% and also outperforming Bitcoin by 4.3 times.
- TEL continues to surge as it is presently trading around $0.001 from $0.00016 on December 16th.
The third crypto asset eclipsing Bitcoin in monthly returns is the blockchain transaction tracking protocol known as Parsiq (PRQ). PRQ had gained 414% in 30 days and exceeded BTC’s performance by 4.2 times.
- Recent data show that it’s on an impressive bullish run, printing a new all-time high of $1.78 on January 16th from $0.18 on December 16th.
The fourth digital currency is known as DeFiChain (DFI) printing gains of a 401% surge.
- The crypto that helps its users with seamless access to Defi services has also outmatched Bitcoin by 4.1times within a month
- DFI is presently trading at $2.64 after surging from $0.53 on December 16th.