The Singapore-based investment fund, Three Arrows Capital, reported a significant increase in its position in Grayscale Bitcoin Trust (GBTC) of Grayscale Investments, and now holds 38,888,888 shares, valued at just over $ 1.31 billion.
This is a significant jump from the GBTC holdings previously reported by the company, which stood at just over 21 million shares in June 2020. Three Arrows holdings represent a position of approximately 36,969 BTC and almost 6.1% of the total of 638,906,600 shares issued to date.
"We continue to enjoy working with the Grayscale team and look forward to investing more in the cryptocurrency ecosystem," said Three Arrows Capital co-founder Kyle Davies, in a statement to The Block.
The value of assets under Grayscale's skyrocketed along with the price of Bitcoin and other cryptocurrencies, with the company reporting a total of more than $ 20 billion in assets under management at the end of the year on December 31. That's an increase of more than 10 times over the beginning of 2020.
Grayscale offers a way for institutional investors to gain exposure to Bitcoin and other crypto assets through its various funds, which are fully regulated by the United States Securities and Exchange Commission and publicly traded. According to a Grayscale report last year, 84% of GBTC buyers are institutional investors, with accredited individuals representing just 12% of the total.
GBTC's main investors come from inside and outside the crypto market. Cryptocurrency company BlockFi owned 5.07% of all GBTC shares issued last month. ARK Invest, a $ 4.5 billion investment fund, owned more than 8 million GBTC shares last month, while $ 5.4 billion asset manager Horizon Kinetic held over 5.1 million shares. actions.
Grayscale uses investors' trust money to buy large amounts of cryptocurrency and then lists those funds in the stock market, tracking the price of the cryptocurrency for each respective fund. The shares are traded at a premium, however, due in part to the company's management fees.
The Grayscale Bitcoin Trust represents the vast majority of assets under Grayscale's management, totaling just under $ 17.48 billion as of December 31. The second highest fund, the Grayscale Ethereum Trust, reached almost $ 2.176 billion. The stock closed December 31 at $ 32.00 each and rose to $ 36.60 today.
* Translated and edited with authorization from Decrypt.co