Just recently, Grayscale Bitcoin trust has purchased another $1B worth of Bitcoin. This also brought their total assets under management to $46 billion. The firm is very close to the $50 billion mark and will close on that very soon. This will be a great achievement by the institution as they are the first Bitcoin investment trust active since 2013. Over the years, they have grown steadily, but in 2020-21, it was even more substantial.
Increasing assets under Grayscale trust
As the scale of operations of the trust increases, so are the number of assets under the company’s management. It has also started to provide investment options into many other cryptocurrencies and has recently added 5 more tokens for interested investors. The company has been adding new tokens in their portfolio in the form of trusts, and the share amount is decided upon that. Some of the popular ones are Ethereum, Litecoin, Bitcoin Cash, Zcash trust, among others.
But these trusts are negligible on comparing to the size of the Bitcoin trust of the company. That accounts for more than 80% of the entire assets the company is holding. A thing that I really appreciated about Grayscale is its openness to altcoins and how the company is continuously adding new trusts to its list. So, anyone who wants to get associated with the trust as an investor can do so by investing in any of the coins.
The reason for having altcoins in the list is quite simple. Even though they might be risky as compared to Bitcoin or Ethereum, but their returns could also be higher. Most popular altcoins today have scaled over 100 times in the last 6-8 months. So, even in the future, if investors are willing to take some risk, then having some popular and scalable altcoins on their portfolio is a wise idea.
Future plans of Grayscale trust
The Bitcoin trust is quite famous and is a popular investment for investors. And now, in the future, the trust plans to launch its own ETF like many other companies and funds. If this happens, they will have an even wider audience to cater to and, in turn, will boost the price of Bitcoin. In Canada, the Bitcoin ETF has already become worth $1 billion. And the US market is 26 times larger than that, so just think about the depth of the situation.
But for now, it doesn’t seem to be an easy thing to do. The US regulations are quite strict, and it won’t be that easy for any trust, company, or fund to get their BTC ETF approved. Presently, there are 7 Bitcoin ETFs, all waiting for the approval of the SEC. In this way, the market is already becoming saturated even before the approval happens.
What are your thoughts on Grayscale Bitcoin Trust’s growth? And do you think their ETS will be approved by the SEC? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.