The crypto space has been on fire in recent weeks and it was primarily driven by the highly impressive rally in Bitcoin, the most valuable cryptocurrency in the world. One of the significant beneficiaries of the rise in the price of Bitcoin has the Grayscale Bitcoin Trust (OTCMKTS:GBTC).
Over the course of the past month or so, the Grayscale stock rose by as much as 25% and mirrored the bull run that was seen in Bitcoin. In the middle of July, the trust announced its results for the second quarter and it proved to be highly impressive. In light of such developments, it could be worthwhile for investors to take a closer look at Grayscale.
In the second quarter, the Bitcoin trust added almost $1 billion in additional funds and it proved to be a record quarterly performance for Grayscale. The previous quarterly high for fresh funds was around 50% of the amount that it added in Q2 2020. It was a massive quarter for the company and following the latest inflows, the total investments across all the crypto products it offers went up to as much as $2.6 billion. In addition to that, it is interesting to note that it was the first time that the total inflows into the fund exceeded $1 billion over the course of a 6 month period.
In its second-quarter report, the company stated that the Grayscale Bitcoin Trust managed to get $751.1 million in fresh inflows, while the Grayscale Ethereum Trust garnered $135.2 million in inflows. However, one of the more important things to keep in mind with regards to the record inflow of funds into Grayscale is the fact that as much as 84% of those funds were from institutional investors.
That is a significant development and indicates that slowly but surely crypto is emerging as a viable investment vehicle for bit ticket institutional investors. On the other hand, the majority of the funds inflow was from existing investors and only $124.1 million of the funds came from new investors. As of July 15, the total value of assets under management at the firm stood at $4.6 billion, and out of that, the Bitcoin Trust is the biggest with total assets under management valued at $3.56 billion.
More importantly, investors can back the Grayscale Investment Trust from now on as on July 21 this year, it was approved for public trading. The United States Financial Industry Regulatory Authority revealed that the Grayscale Investments’ Litecoin Trust and Bitcoin Cash Trust have been approved for public trading. It should be noted that public trading has already been available for the Bitcoin Trust, Ethereum Classic Trust, Digital Large Cap Fund, and the Ethereum Trust.
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