Monday, March 1, 2021

Grayscale Increases Its Investment in Bitcoin and Ethereum at Expense of XRP, LTC, and Others

The recent data shared by Grayscale Investment, a crypto asset management firm, indicates its increased investment in the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) at the expense of other top digital currencies such as XRP, Litecoin (LTC) and others.

In a thread of tweets shared on 10th July 2020, Grayscale illustrates the new arrangement of its digital large-cap fund (DLC), a crypto investment that comprises Bitcoin, Ethereum, XRP, Litecoin, and others.

According to the illustration, between 31st March 2020 and 30th June 2020, the world’s leading crypto asset manager, Grayscale, added 0.5% weight in Bitcoin (BTC) and 2.1% weight in Ethereum (ETH).

On the other hand, the crypto investment firm decreased the shares of XRP, the 4th largest cryptocurrency, by 1.4%, Bitcoin Cash (BCH) by 0.8%, and Litecoin (LTC) by 0.6% within the same range of time.

Grayscale Investment announced the updated weightings for its DLC after publishing its latest quarterly review on 30th June 2020. The data reveals that the firm’s net assets under management (AUM) in its large-cap is $33 million.

The total crypto investments under Grayscale’s management as of 10th July is worth $4.1 billion. These investments include $3.55 billion in Grayscale Bitcoin Trust (GBTC) and $410.1 million in Grayscale Ethereum Trust (ETHE).

Assets under Grayscale’s management experienced a 250% increase from $1.17 billion to $4.1 billion.

The illustration indicates that the year-to-date inflow of investment into Grayscale notably outweighs all the investments garnered between 2013 and 2019. And the digital assets that dominate these investments are the two largest cryptocurrencies Bitcoin (BTC) and Ethereum (ETH).

Ethereum Is Leading Crypto Markets As Bitcoin (BTC) Plays Catch Up

In a post shared about 2 days ago, a Weiss Crypto Ratings analyst, Juan Villaverde, says Ethereum (ETH) is leading the cryptocurrency markets as Bitcoin (BTC) lags behind.

He wrote:

“What’s odd is that Bitcoin (BTC, Tech/Adoption Grade ‘A’) was clearly a laggard, barely able to move higher during a week when crypto-assets generally were quite strong.

It’s unusual to see such a stark contrast between the Weiss 50 Crypto Index and the Weiss 50 Ex-BTC Crypto Index.” 

“Beyond Ether, we note excitement around DeFi-related projects such as Chainlink (LINK, Weiss Liquidity/Availability Grade ‘B’) and third-generation smart-contract platforms like Cardano (ADA, Tech/Adoption Grade ‘B+’) and Tezos (XTZ, Weiss Tech/Adoption Grade ‘B-‘).”

Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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