Grayscale Down More Than $400 Million in Crypto Market Rout
According to a recent portfolio update, the majority of Grayscale’s losses stem from the recent 20% drop in Bitcoin (BTC), which decreased the net value of the firm’s Bitcoin Investment Trust from $1.275 billion on November 13 to $893 million as of Wednesday.
11/21/18 UPDATE: Holdings per share and net assets under management for our investment products
— Grayscale (@GrayscaleInvest) November 21, 2018
Grayscale’s Ethereum Classic (ETC) and Bitcoin Cash (BCH) holdings suffered the greatest percent losses of all the firm’s assets, falling 40% and 65%, respectively. While these losses are substantial for the short time period, Grayscale has had no trouble securing additional capital throughout the bear market.
As we previously reported, Grayscale added $81.1 million worth of client capital in Q3, with weekly average for its Bitcoin Investment Trust at $4.5 million while its “Non-Bitcoin” Investment Products stood at $1.7 million per week. Nearly 60% of this capital came from institutional investors.
Grayscale has been aggressive in building out its institutional client base with ads on Google and other sites. The firm also recently leveraged Coinbase canceling its fund as a marketing opportunity.
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.