Grayscale re-opens crypto trusts for investment when Bitcoin price rises


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Digital asset investment manager Grayscale has again accepted new investments in almost all of its cryptocurrency trusts. The Investment Manager halted new inflows in six of its trusts in late December 2020 when the six-month lock-up period on the sale of recently acquired shares in its Bitcoin Trust, which trades under the ticker GBTC, ended.

At the time of writing, products such as the Grayscale Bitcoin Trust and the Grayscale Digital Large Cap Fund Trust are available to new investors, although the Grayscale Ethereum Trust is still unavailable. The grayscale XRP trust is and will likely remain inactive. In early January, the fund manager liquidated his holdings in the asset shortly after news of a major lawsuit by the US Securities and Exchange Commission against Ripple.

Screenshot of grayscale trusts open to investment

Grayscale persists regularly and resumes the inflow of new investors into their funds. Funds for private placement funds will remain open during these closure periods. In addition, all investors in the Grayscale Crypto Trusts are subject to a six-month lock-up period for newly purchased shares. After that, they can sell the shares on the open market to non-accredited investors.

Crypto investors are closely watching the actions of Grayscale, which has become the world’s largest asset manager for cryptocurrencies. As of January 11, Grayscale has $ 24.5 billion under management in its various crypto funds. In early January, Cointelegraph reported that Grayscale’s purchases of bitcoin outpaced new coin minting by a factor of three and closed a year of aggressive accumulation by the fund manager.

Bitcoin is up nearly 10% for the week, trading at $ 35,833 at press time. When new investments are opened, the six-month blocking period begins again. Some analysts have claimed that the Bitcoin spot market will be propelled higher towards the end of this period as the shares of Grayscales GBTC enter the open market.