World’s biggest crypto hedge fund manages $37.8 billion

The world’s biggest crypto hedge fund, Grayscale, now has a whopping sum of $37.8 billion under its management.

By Olumide Adesina

The world’s biggest crypto hedge fund manager, Grayscale, now has a whopping sum of $37.8 billion under its management as of 12th February, 2021.

Grayscale, whose publicly-traded crypto assets offer rich investors the chance to trade crypto on the equity market, has had its crypto holdings gain twelve times since the start of 2020.

02/12/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $37.8 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/Xr1b5OVvg1

— Grayscale (@Grayscale) February 12, 2021

Most of the massive holdings of the crypto hedge fund juggernaut includes $31 billion held in Grayscale Bitcoin Trust. That said, Bitcoin’s soaring prices also helped the hedge fund hit $20 billion by the end of 2020.

Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors’ names, providing a familiar structure for financial and tax advisors, and easy transferability to beneficiaries under estate laws.

READ: World biggest crypto hedge fund: Grayscale Crypto holdings now $9.8 billion

Investors are increasing their cash flow investments to notable crypto hedge funds, who are prepared to pay a premium to buy and hold cryptos through the security of a regulated fund like Grayscale.

According to Glassnode, “Since Grayscale Ethereum Trust reopened in February, a total of 195,000 ETH has flown into the trust. 53,000 Ethereum was added yesterday alone.

The current Assets Under Management of Grayscale Ethereum Trust is $5.5 Billion – more than double since the beginning of the year.”

Metric Description; The Assets Under Management of the Grayscale Ethereum Trust,

Since the Grayscale #Ethereum Trust reopened in February, at total of 195,000 ETH have flown into the trust.

53,000 #ETH were added yesterday alone.

The current AUM of the ETHE Trust is $5.5B – more than double since the beginning of the year.

— glassnode (@glassnode) February 12, 2021

What you need to know about hedge funds

They are firms that offer alternative investments to a specific type of investors (high net worth individuals), in a bid to protect their investment portfolios from market uncertainty, while generating positive returns regardless of market sentiments.