Crypto Market Meltdown : Grayscale Investment Looses USD 400 Million in Asset Value

Grayscale

Crypto Market Meltdown : Grayscale Investment Looses USD 400 Million in Asset Value

The market has been spiralling downward over past couple of weeks and has lost over 30 billion in market cap. While a lot of individual investors have found their capital wiped off institutional investors too have had no respite. According to the latest tweet from Grayscale Investment, the digital asset management firm has lost nearly USD 400 million

Grayscale’s AUM falls from USD 1.4 billion to USD 1 billion

According to a recent twitter portfolio holding update which was released by the asset management firm for its investors, showed that the firm the firms total AUM sits on USD 1 billion.

The same twitter update on Nov 13, a day before the fall started, showed that the firm had Total AUM of USD 1.4 billion.

Comparing both the updates, it looks like the 20% fall in Bitcoin has hurt the portfolio hard and net asset value of the firm’s Bitcoin Investment Trust has come down from $1.275 billion on November 13 to $893 million as of Wednesday. BCH also hasn’t been spared as the investment in BCH investment trust has come down from USD 8 million to USD 3.6 million in the given period creating one of the biggest dents in the fund’s portfolio

These losses are substantial for the short time period otherwise Grayscale had no trouble securing additional capital throughout the bear market.

On November 1 as part of its Q3 update, the firm had announced the following

The report stated the following details

Q3 2018 Highlight

  • 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 Products3: $1.7 million
  • Majority of investment (70%) has come from institutional investors.

YTD 2018 Highlights

  • 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.

The report also stated

“Despite a slight deceleration in the most recent quarter, new investment into Grayscale products remains strong. Grayscale raised $81.1 million in Q3, bringing our year-to-date inflows to nearly $330 million. This marks the strongest year-to-date inflows through September that we’ve experienced during any calendar year since the inception of our business.”

Will Grayscale be able to hold its institutional investors money despite the fall now that remains a question.

What is your take on the current mood and sentiment of the market? Do let us know your views on the same

Summary
Market Meltdown Impact: Grayscale Investment Looses USD 400 Million in Asset Value
Article Name
Market Meltdown Impact: Grayscale Investment Looses USD 400 Million in Asset Value
Description
The market has been spiralling downward over past couple of weeks and has lost over 30 billion in market cap. While a lot of individual investors have found their capital wiped off institutional investors too have had no respite. According to the latest tweet from Grayscale Investment, the digital asset management firm has lost nearly USD 400 million
Author
Publisher Name
Coingape
Publisher Logo
Show Comments
Nilesh Maurya 480 Articles

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Reach out to him at Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Reach out to him at [email protected]

Follow Nilesh @