Grayscale is the company behind the Grayscale Bitcoin Trust (GBTC). GBTC is a trust which buys and holds bitcoin and and other cryptocurrencies. A trust (an investment trust) is a company that owns a fixed amount of a given asset (like gold or bitcoin). Investors pool money and buy shares of the trust, owning contracts that represent ownership of the asset held by the trust.
In December Grayscale said they were temporarily closing off its crypto trusts to new investors. The news made headlines, but Grayscale did the same thing in 2019. Although the trust was closed or new investor, existing investor could continue to invest.
JP Morgan immediately said Grayscale inflows were too big to to halt additional inflows and their actions would have adverse affects on the price of bitcoin. Bitcoin eventually ran up to $40k before correcting to $32k.
Grayscale Investments' new chief executive officer says the world's largest manager of digital assets expects increased interest from institutional investors such as pension funds and endowments to continue to fuel its rapid growth.
The Grayscale Bitcoin Trust has become a bellwether for digital asset investors after accumulating more than 3 per cent of the total supply of the largest cryptocurrency.
In 12 months, Grayscale went from $2 billion to $20 billion assets under management. They also plan on doubling their staff and launch about 6 new products this year. Probably the best news they recently announced is that they are open for business again and now accepting funds from new investors.
You know what that means...Bitcoin to the MMMMMOOOOOOOONNNNNNNNNNN!!!!
Personally, I added to my retail GBTC bag on the pull back earlier this week...I'm looking for GBTC to hit $100 before the end of the year.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
