Digital Currency Group Subsidiary Grayscale Has Raised $329.5 Million For Product Development

  • Grayscale, a subsidiary of the Digital Currency Group (DCG), has released its Q3 2018 financial report.
  • Grayscale revealed that investor interest in its products remains "strong" despite the extended crypto bear market.

Grayscale, a “trusted authority” on investments that focuses on providing “secure access” and “diversified exposure” to crypto assets, has released its Q3 digital asset investment report. The year-to-date (YTD) “highlights” of the report noted that the firm has raised $329.5 million so far - in order develop its products.

Notably, the majority of investments (59%) have come from institutional clients.

"New Investments" Remain "Strong"

Grayscale, which is a subsidiary of the Digital Currency Group (DCG), mentioned that “new investment” into its products continue to remain “strong.” The company raised $81.1 million during Q3 2018 - which brings its YTD investment inflow to almost $330 million.

Established in 2013, Grayscale revealed that its recent financial report “marks the strongest year-to-date inflows through September” that the firm has experienced “during any calendar year” - since the launch of its business.

Grayscale’s suite of products continue to attract more capital - with bitcoin (BTC) being the most preferred form of crypto investment. In Q3 2018, 73% of total investments made by Grayscale’s clients were in its Bitcoin Investment Trust. Meanwhile, 23% were “tied to other digital asset” investments offered by the firm.

The investment company also revealed: 

Institutional investors remain engaged with Grayscale products … Institutional investors’ share of new investment increased to 70% in Q3, though the dollar-value invested was lower than in the two previous quarters.

Grayscale

"First Positive Quarterly Return"

Commenting on the recent trends in digital asset investments, the report questioned whether there would be “a potential reversal” as a Bitcoin Investment Trust and XRP Investment Trust “are bucking the trend on a possible reversal.” This may have helped generate the company’s “first positive quarterly return” for 2018.

Grayscale’s Q3 2018 “highlights” are as follows:

  • “Total Investment into Grayscale Products in Q3 2018: $81.1 million”,
  • “Average Weekly Investment – All Products: $6.2 million”,
  • “Average Weekly Investment – Bitcoin Investment Trust: $4.5 million”,
  • “Average Weekly Investment – “Non-Bitcoin” Investment Products: $1.7 million”,
  • “Majority of investment (70%) has come from institutional investors.”

The company’s YTD key financial figures:

  • “Total Investment into Grayscale Products in Q3 2018: $329.5 million (up 33% in Q3)”,
  • “Average Weekly Investment – All Products: $8.4 million”,
  • “Average Weekly Investment – Bitcoin Investment Trust: $5.5 million”,
  • “Average Weekly Investment – “Non-Bitcoin” Investment Products5: $2.9 million”,
  • “Majority of investment (59%) has come coming from institutional investors.”

Crypto Market Update for 24 February 2020: BTC, ETH, ADA, and TRX

Siamak Masnavi

This article provides an overview of how Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and TRON (TRX) have been doing over the past 24-hour period, and covers recent news that might have affected their prices (or might do so in the future).

To give you a rough idea of how well the crypto markets are doing today, 18 out of the top 20 cryptoassets (by market cap) are currently in the red (against the dollar).

All market data used in this article was taken around 10:00 UTC on 24 February 2020 from CryptoCompare, which also provided the price charts shown in this article.

Bitcoin

BTC-USD 24 Hour Chart on 24 Feb 2020.png

BTC-USD is trading at $9,715. This means that the Bitcoin price has been under the $10K level since February 20. Still, Bitcoin has still managed to gain +37.60% against USD in the year-to-date (YTD) period.

As for why Bitcoin is having trouble breaking through the $10K level, one theory is that Bitcoin is currently being seen more as a "risk-on" rather a "risk-off" asset; another is that Bitcoin whales are manipulating the market.

Here is prominent crypto analyst/trader Josh Rager with some technical analysis of Bitcoin's latest price action:

Ethereum

ETH-USD 24 Hour Chart on 24 Feb 2020.png

ETH-USD is trading at $265.99. Although ETH-USD has dropped 0.92% in the past seven-day period, for the YTD period, it is up +103.37%.

Cardano

ADA-USD 24 Hour Chart on 24 Feb 2020.png

ADA-USD set a six-month high on February 14 when it hit $0.07083. Since then, it's been going downhill.

Although the 7-day and 10-day pictures look bad, Cardano's return-on-investment (ROI) figures (against USD) for the 30-day, YTD, and 90-day periods look quite decent, being +36.99%, +76.77%, and +60.44% respectively.

On February 21, IOHK tweeted that the Cardano network had successfully carried out a scheduled network upgrade (a hard fork) to bring in Ouroboros BFT (a new consensus mechanism):

 TRON

TRX-USD 24 Hour Chart on 24 Feb 2020.png

TRX-USD is trading at $0.0204, which means that TRON is currently the 16-th most valuable cryptoasset by reported market cap.

TRX-USD has dropped -6.35% in the past 7-day period, but so far in 2020, it is up +54.45%.

Earlier today, in an article for Coindesk, Alexander S. Blum, the Chief Operating Officer of crypto finance firm Two Prime, wrote:

"Viewed through the lens of traditional finance, TRON is acting pretty predictably. It is acquiring more market share through the acquisition of weakened competitors, like BitTorrent, and their networks while promoting their retail financial product. They’re performing a balancing act between being a financial product and a technical one...

"Justin is leading TRON as a for-profit business pretty well. Why does that irk many hardcore developers? For those in the Western world sticking up their noses at TRON, it’s worth reflecting on how deeply elitist it is to judge from a position of pure technical idealism...

"The emergence of TRON in highly competitive Asian markets is commendable. They are pioneering a new business model and creating wealth ex nihilo – out of thin air – because they focus on what works today. Their users share the company’s pragmatism. TRON, EOS and Ripple are pioneering community-centric financial products that offer exciting new models for wealth creation."

Featured Image by "AhmadArdity" via Pixabay.com