The world’s biggest crypto hedge fund manager Grayscale closed 2020 with a whopping sum of $20 billion under its management.
Grayscale, whose publicly-traded crypto assets offer rich investors the chance in trading crypto on the equity market, had its crypto holdings gain ten times since the start of 2020.
Most of the massive holding of the crypto hedge fund juggernaut includes $17.4 billion held in Grayscale Bitcoin Trust. That said, also soaring Bitcoin’s in prices helped the hedge fund hit $20 billion by the end of 2020.
12/31/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) December 31, 2020
Bitcoin lately struck a new all-time high on New Year’s day of just over $29,500.
- One of the key advantage crypto investors have accessing trusts like Grayscale’s are they can trade their crypto trusts on the stock market, which is useful for people wanting to trade from tax-sheltered accounts.
Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors’ name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws.
- The Trust has seen its assets under management (“AUM”) surge from $1.9 billion to $20 billion YTD.
- Grayscale Bitcoin Trust does not operate a redemption program and its shares do not trade on a national securities exchange.
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.