203,000 BTC: Grayscale Investments Now Holds Over 1% of Bitcoin's Circulating Supply

Grayscale, a digital currency investment firm established in 2013, now holds over 203,000 bitcoin (BTC) - an amount currently worth about $780 million according to CryptoCompare data.

According to LongHash’s research, this makes Grayscale - a subsidiary of the Digital Currency Group - the largest institutional holder of bitcoin, with more than 1% of bitcoin's current circulating supply of about 17.4 million coins.

BTC Investment Trust Trades "At 22% Premium" Over Bitcoin's Market Price

The large amount of BTC is held in Grayscale’s Bitcoin Investment Trust and its “shares are the first publicly quoted securities solely invested in and deriving value from the price of Bitcoin”, LongHash’s post explains.

Despite the long bear market this year, Grayscale has reportedly seen its investors adding to its “bitcoin position each month of 2018.” Moreover, the company’s BTC Investment Trust presently “trades at a 22% premium” over bitcoin’s average market price, which suggests that this type of financial instrument may be more appealing to accredited investors.

As CryptoGlobe reported on November 1st, Grayscale had released its Q3 2018 cryptoasset investment report. The year-to-date (YTD) summary of the report revealed that the investment firm had raised $329.5 million so far - in order to fund the ongoing development of its financial products.

Ethereum Classic (ETC) Investment Trust Is Worst Performing

The company’s financial outlook report also noted that the majority, 59%, of investments had come from its institutional clients. Notably, Grayscale’s management team had said that “new investment” into its products continued to remain “strong” - as it raised $81.1 million during Q3 2018. The majority of investments (59%) have come from institutional clients.

As covered (on November 22nd), the value of Grayscale’s assets under management dropped by almost $400 million due to the massive digital currency market sell-off - which has seen the market capitalization of the nascent asset class fall sharply from all-time highs of over $800 billion to currently around $125 billion.

Grayscale’s Ethereum Classic (ETC) Investment Trust has notably been one of its worst performing investments - as its value dropped from $42.5 million to $26.1 million, which was almost a 40% depreciation in a span of about 3 weeks (late October to November 22nd 2018).

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Coinbase Quietly Pulls the Plug on Its Cryptocurrency Bundle Product

Francisco Memoria

The San Francisco-based cryptocurrency exchange Coinbase has quietly pulled the plug on its Bundle product, which allowed users to buy a basket of cryptocurrencies with fiat.

According to an update on its FAQ page, the cryptocurrency exchange “deprecated” the Coinbase Bundle product, and all assets in it have been “redistributed to their respective individual asset wallets.”

The move, first spotted by Crypto Briefing, is believed to have been made because the product wasn’t a profitable one. Coinbase Bundle was launched back in September of last year to make it easier for investors to gain exposure to the cryptocurrency ecosystem, through a weighted basket of the cryptocurrencies the company then offered.

This means users could use a small amount of fiat to buy bitcoin, litecoin, ethereum, bitcoin cash, and ethereum classic at once. Per the exchange itself, the bundle’s purpose was to “make buying more convenient and less overwhelming.”

At the time, the exchange also launched other features: Coinbase Learn and new asset pages.

The timing was off, however, as the product was launched during the bear market that saw the price of most cryptocurrencies drop well over 80%. Images shared on social media in December of 2018, when bitcoin hit its $3,200 low, showed investing $100 on Coinbase would’ve led to significant losses only a few months later.

As covered, Coinbase recently launched a service offering its users four free exclusive “trading signals,” in a bid to help its customers “independently create and manage their own crypto strategy.”

It’s worth noting Abra, a digital asset exchange and wallet provider,  launched a product packaging various cryptocurrencies into one at about the same time Coinbase launched its Bundle product. Abra’s product is its BIT10 token.