The world’s biggest crypto hedge fund, Grayscale, now has a massive sum of $40 billion under its management as of 18th 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.
02/17/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $40.0 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/YgItGWLZVK
— Grayscale (@Grayscale) February 17, 2021
Most of the massive holdings of the crypto hedge fund juggernaut include $33.1 billion held in Grayscale Bitcoin Trust. That being said, Bitcoin’s soaring prices also helped the hedge fund’s holding valuation go up amid Bitcoin breaching the $52,000 price level for the first time ever.
READ: Investment bank with over $35 billion assets plans investing in bitcoin
What you should know: Grayscale funds are designed primarily for elite investors in buying and holding cryptos through the security of a regulated fund like it.
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.
Just recently speaking on CNBC’s SquawkBox, Sonnenshein, the leader of the world’s most valuable crypto hedge fund, stressed that Tesla was not the first big company to add the world’s most popular crypto to its balance sheet. He is, however, of the opinion that its example will be followed by other large enterprises.
READ: Grayscale: World’s biggest Crypto hedge fund holds $8.35 billion worth of Bitcoin
“You’re going to see a lot of other visionary leaders and disruptive companies actually realizing it has really moved from why to why not,” he said.
"You have @ElonMusk @michael_saylor @jack. You're going to see a lot of other visionary leaders and disruptive companies actually realizing it has really moved from why to why not," says @sonnenshein on corporations investing in #bitcoin pic.twitter.com/6FnwEjGFNL
— Squawk Box (@SquawkCNBC) February 10, 2021
Investors are increasing their cash flow investments to notable crypto hedge funds that are prepared to pay a premium to buy and hold cryptos through the security of a regulated fund like Grayscale.
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.
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