Grayscale’s Record-Breaking Hat-trick, Q3 Inflows Rakes in Over $1 Billion in Investment

Q3 was the best quarter ever for Grayscale Investments, which serves institutional investors, family officers, and private investors.

The largest digital asset manager took in more than $1 billion in new investment in its largest-ever quarterly inflows, marking it the third-straight quarter when the asset manager broke its own record for inflows.

As per the firm’s report on Wednesday, Grayscale now has $5.9 billion in assets under management (AUM).

This growth came despite the global economy taking a nosedive in 2020, and the price of Bitcoin recording gains of only 18%.

Like every time, the leading digital asset remained the most popular cryptocurrency. Grayscale Bitcoin Trust (GBTC), the company’s largest product, saw $719.3 million in new inflows in Q3.

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The persistent demand for GBTC has the company becoming one of the fastest-growing investment products in the world. It is further increasing the appetite for Grayscale’s other products.

Ethereum saw a record growth with 17% of the investment in Grayscale Ethereum Trust (ETH) from new institutional investors.

This week, Grayscale announced that ETHE is now an SEC reporting company that helped in its price surge.

“We believe in a future where multiple digital assets coexist,” said Michael Sonnenshein, managing director at Grayscale Investments. “We believe that there is a future state where bitcoin, Ethereum, and other digital currencies coexist as part of the digital currency cohort” and are “used for different things,” he said.

Grayscale’s Bitcoin Cash, Litecoin, and Digital Large Cap products also saw over 10x growth in inflows quarter-over-quarter.

Interestingly, for the first time, Grayscale found that a majority of its investors, more than half at 57%, were investing at least two of its crypto investment products, up from 44% a year ago and 37% when the company was first launched in 2012.

More institutions are surely coming, which are not only the primary source of investment capital at 81% in Grayscale, but they also increased their average allocation to $2.9 million from the previous quarter’s $2.2 million.

What is more interesting than this “consistent and significant growth” is what has been behind it.

Besides the digital assets outperforming major indices YTD, investors are interested in them because of the ongoing stimulus concern. With more significant fiscal stimulus expected in Q4, “more investors may look to digital assets for yield in this paradigm of monetary inflation,” it says.

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Author: AnTy

Singapore’s Financial Regulator, MAS, Wants More Power to Push Stringent Rules For Crypto

Singapore’s financial regulator, which also serves as the country’s central bank, The Monetary Authority of Singapore (MAS), is seeking to introduce stricter rules for the crypto industry to adhere to the new Financial Action Task Force (FATF) standards.

The financial watchdog is seeking to have more powers that will help in prohibiting any unsuitable enterprise from doing any business within the country. The financial overseer is also seeking powers to oversee, license, and regulate all crypto businesses which offer services in other countries but are based in Singapore.

As per the proposal, the country’s financial authority is seeking to expand the provisions of the Payment Services Act (PSA), which came into effect in January this year. If the proposal is adopted, Virtual Asset Service Providers (VASPs) will be required to conduct their operations in other countries using the same standards and regulations in their country of origin, Singapore. Although the MAS, back in March, already exempted a few of the top crypto companies: Binance, Coinbase, Gemini, and Ripple.

The regulator has already published a consultation paper seeking public input and feedback in regards to the expanded powers of the Monetary Authority of Singapore.

The regulator argues that the new proposal will put a halt to regulatory arbitrage where multinational VASPs choose the regulations to adhere to if they suit their mode of business.

The VASPs that will be significantly affected by these proposals are the ones that work abroad but maintain a “meaningful presence” in the city-state; that is, their directors and offices are located within Singapore. Corporations registered in Singapore, partnerships, as well as limited liability partnerships created in the country, will also be affected by the new legislation.

The financial regulator also explains that the regulations will help Singapore to adhere to the set anti-money laundering (AML) standards that were set late last year by the global financial watchdog FATF.

The public has until August 20 to send their views and opinions.

Asia’s most preferred countries, is Singapore, for the crypto industry, because of its friendly crypto environment. There are more than 150 crypto and blockchain-based firms headquartered in the city-state.

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Author: Joseph Kibe

Binance Backed FTX To Launch A Spot Crypto Exchange For The US Market In May

Crypto derivatives exchange which mainly serves the Asian market, FTX, is set to roll out a spot exchange to serve the US market, the Block reports.

Sam Bankman-Fried, FTX CEO, explained that currently, the US exchange is in beta testing and is expected to officially launch early next month.

As per the FTX.US website, the newly established exchange has so far obtained a licence with the Financial Crimes Enforcement Network (FinCEN) to operate as a money services business (MSB). The firm is currently working to obtain a money transmitter license (MTL) in various states across the country.

It’s important to note that financial services companies must acquire MSB and MTLs to operate in the US. Additionally, FTX will have to obtain Bitlicense to operate in New York.

The firm will operate with two separate order books: one for the FTX US and the other one for the main FTX derivatives exchange.

At the moment, FTX platform provides USD trading pairs for various crypto assets consisting of Bitcoin, Bitcoin Cash, Ether, Litecoin, USDT and PAXG.

According to Bankman-Fried, the firm seeks to add extra assets, as well as onramp options prior to the official launch. The firm is also set to add margin trading features for only qualified users.

FTX was started in May 2019 and has picked traction since then and currently boasts a volume of about $728 million per 24 hours of trading, its website states. Since it was started, FTX has primarily focused on the Asian market and the majority of its team works from Hong Kong.

FTX has attracted reputable investors from within the crypto industry. In February this year, the firm launched an exercise to raise about $15 million having valued the firm at $1 billion and an equity token was kicked off the same month.

Binance crypto exchange, the largest exchange firm in the world, invested in FTX but the investment amount remains anonymous.

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Author: Joseph Kibe