Cryptocurrency
World’s biggest crypto hedge fund manages $37.8 billion
The world’s biggest crypto hedge fund, Grayscale, now has a whopping sum of $37.8 billion under its management.
The world’s biggest crypto hedge fund manager, Grayscale, now has a whopping sum of $37.8 billion under its management as of 12th February, 2021.
Grayscale, whose publicly-traded crypto assets offer rich investors the chance to trade crypto on the equity market, has had its crypto holdings gain twelve times since the start of 2020.
02/12/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $37.8 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/Xr1b5OVvg1
— Grayscale (@Grayscale) February 12, 2021
Most of the massive holdings of the crypto hedge fund juggernaut includes $31 billion held in Grayscale Bitcoin Trust. That said, Bitcoin’s soaring prices also helped the hedge fund hit $20 billion by the end of 2020.
Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors’ names, providing a familiar structure for financial and tax advisors, and easy transferability to beneficiaries under estate laws.
READ: World biggest crypto hedge fund: Grayscale Crypto holdings now $9.8 billion
Investors are increasing their cash flow investments to notable crypto hedge funds, who are prepared to pay a premium to buy and hold cryptos through the security of a regulated fund like Grayscale.
According to Glassnode, “Since Grayscale Ethereum Trust reopened in February, a total of 195,000 ETH has flown into the trust. 53,000 Ethereum was added yesterday alone.
The current Assets Under Management of Grayscale Ethereum Trust is $5.5 Billion – more than double since the beginning of the year.”
Metric Description; The Assets Under Management of the Grayscale Ethereum Trust,
READ: Crypto company, Paxos seeks approval to be a U.S National Bank
Since the Grayscale #Ethereum Trust reopened in February, at total of 195,000 ETH have flown into the trust.
53,000 #ETH were added yesterday alone.
The current AUM of the ETHE Trust is $5.5B – more than double since the beginning of the year.
Chart 👉 https://t.co/vMSR92txy9 pic.twitter.com/SgZ3ntLDqk
— glassnode (@glassnode) February 12, 2021
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.
Cryptocurrency
CBN Governor calls Crypto illegal money
The CBN Governor, Godwin Emefiele stated that the Crypto ban was in the best interest of Nigerians.
The Governor of the Central Bank of Nigeria, Godwin Emefiele has recently defended the apex bank’s decision in excluding cryptocurrencies from Nigeria’s financial ecosystem.
Appearing before a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime, Godwin Emefiele stated that the Crypto ban was in the best interest of Nigerians.
According to a report by an online media outlet, while addressing the Senate committee, Godwin Emefiele remarked,
“Cryptocurrency is not legitimate money. Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”
READ: CBN crypto ban and its ramifications for Nigerian banks
“Cryptocurrency is used to describe the activities of players in an electronic dark world” – CBN Governor. pic.twitter.com/2VQuY3HbX7
— YabaLeftOnline Media (@yabaleftonline) February 25, 2021
The head of the apex bank affirmed Nigeria’s central bank resolve in continuing its surveillance and deeper understanding of the crypto ecosystem, buttressing that its major objective remains to educate Africa’s largest economy on emerging financial risks and protect Nigeria’s financial system from the activities of money launderers, currency speculators, and foreign-based fraudsters.
Recall in a press release dated, the 7th of Feberuary 2021, the CBN had explained in detail the motives for its directive to Deposit Money Banks (DMBs) and other financial institutions to desist from transacting in and with entities dealing in cryptocurrencies.
READ: CBN claims no immunity for Emefiele as it fires back at NESG
“Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they are increasingly being used for money laundering, terrorism financing, and other criminal activities. Small retail and unsophisticated investors also face a high probability of loss due to the high volatility of the investments in recent times.
“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from their use and protect our financial system from the activities of fraudsters,” the CBN stated.
READ: CBN’s Emefiele explains why banks restructured N7.8 trillion loans to customers
What you should know: The CBN, some weeks ago issued a circular prohibiting banks and other financial institutions from carrying out transactions in cryptocurrencies or facilitating payments for crypto exchanges.
- The CBN’s directive has since gotten very harsh reactions on social media with many condemning the policy as a deliberate attempt by the government to impoverish young Nigerians who have been able to create wealth for themselves through crypto trading.
- Interestingly, Nigeria along with other countries ranked as the worst countries to start a career do not wholly accept or legally recognize cryptocurrency and other digital assets.
Cryptocurrency
Unknown identity plans to sell $400 million worth of Bitcoin on Coinbase
An unknown entity transferred 8,000 BTC (399,897,857 USD) from an unknown wallet to Coinbase.
