Grayscale Reopens Deposits for New Investors In Its Crypto Trusts; Excludes Ethereum & XRP

Grayscale Reopens Deposits for New Investors In Its Crypto Trusts; Excludes Ethereum & XRP

Grayscale’s Bitcoin Investment Trust and Digital Large Cap Fund Trust are now open for investments from new customers.

Grayscale Investments is gearing up for a healthy 2021 as it finally reopens most of its investment trusts and allows deposits.

According to an update on the company’s website, clients can now deposit funds into its Bitcoin Investment Trust and the Digital Large Cap Fund Trust.

Grayscale trusts

All Systems Go

As the update shows, the Grayscale Ether Trust is still unavailable, and not everyone on Crypto Twitter is taking that very well. However, that could change any moment for now considering the interest in Ether. The company’s XRP Investment Trust remains unavailable, which is not surprising considering the legal battle Ripple Labs has with the SEC.

Grayscale closed all of its investment trusts last month, as reported on  Twitter. A company spokesperson later confirmed that the move was due to a mandatory lock-up period for selling recently purchased shares of its Bitcoin Investment Fund.

Now that investments are opening up again, Grayscale appears set to continue with the momentum it held in 2020. Buoyed by increased institutional investment and the Bitcoin rise, Grayscale was able to solidify its place as the crypto industry’s top asset management firm. It currently holds $24.5 billion in assets under management and controls three percent of Bitcoin tokens in circulation.

Markets Open as Investors Eye 2021

The firm is also seeing a significant opportunity for growth in 2021. Last Thursday, company CEO Michael Sonnenshein told Bloomberg that Grayscale had seen a considerable increase in activity and commitments from pension funds and endowments.

With institutional investment hopefully increasing, Grayscale will be looking to benefit and add to its vast portfolio. The development could also bode well for the crypto market at large. Many believe that institutions were the driving force behind last year’s crypto rally, and a continuation of that trend should improve confidence in the marker’s long-term viability.

Retail investors also appear to be making significant moves. Yesterday, Alex Saunders, an Australian crypto-focused journalist, reported that crypto trading activity on PayPal had reached a new all-time high of $242 million. As the journalist put it, this surge shows an increased interest in the crypto space from retail traders.

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Author: Jimmy Aki

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