The largest Bitcoin and cryptocurrency asset manager Grayscale introduced two new cryptocurrency funds last week. This allows investors to trade without the need for crypto exchanges.
Since they began trading, Grayscale’s Litecoin Trust and Bitcoin Cash Trust have been performing well. Trading price was both seen to be playing within a triple-digit premium since then. Aside from that, the Litecoin fund was said to be traded at a huge premium of over 1200% based on the underlying asset’s (LTC) price.
The event launch was headed by Barry Silbert, the owner of the New York-based investment firm. Silbert is known to be an aggressive businessman when it comes to expanding its reach in the crypto world. His investment trust has recorded all-time high quarterly inflows of almost $1 billion in the past 12 months and $5 billion of assets under its management.
These achievements prompted mixed emotions and opinions from the Bitcoin and cryptocurrency market watchers. It also made the community think about the possibility that the investors might not be aware that they are paying above the token’s market rates.
“These trusts are based solely on single assets, and should thus not outperform its underlying asset over time,” Arcane Research analyst Vetle Lunde mentioned. “The excess return should be arbitraged away.”
Moreover, the $50 million funds that have been collected from the accredited investors of the firm over the last 2 years can now be traded like stocks. This will allow investors to be part of the cryptocurrency space without the need to deal with Bitcoin and digital asset exchanges.
Regardless, the firm recorded a total annual amount of $2.2 billion. The largest profit was at $503.7 million during the first quarter of 2020, which nearly doubled the previous quarterly high of $254.8 in the third quarter of 2019. This growth has been impressive that it created a big impact in the firm’s reputation within the crypto market.