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Grayscale Crypto Trust Fund Tops $6 Billion in AUM

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Grayscale Crypto Trust Fund tops $6 billion in AUM (Asset Under Management). Bitcoin [BTC] accounts for $5 billion (83.33%) of the total assets. The AUM under the Ethereum Fund is 876.6 M, accounting for nearly 14.6% of the asset at Grayscale. The update from Arcane Research on Grayscale LLC.’s AUM point towards a high institutional interest in these assets. 

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On Tuesday, Grayscale LLC. added support for Litecoin [LTC] and Bitcoin Cash [BCH] to the list of it’s Crypto Trust Fund .Grayscale’s list of digital assets currently includes 9 cryptocurrencies along with a large-cap fund.

grayscale and crypto AUM
Grayscale Crypto Asset Under Management

High Premiums With Bitcoin

The premium on these crypto-assets is further indicative of the bullishness in the market. GBTC premium over the NAV has been ranging between 7% and 40%; currently over 23%.

grayscale bitcoin trust
Grayscale Bitcoin [BTC] Trust (Price Vs. NAV) (Source)

The premium on the NAV for Litecoin [LTC] and Bitcoin Cash [BCH] is quite high.

The premium of LTCN is at a whopping 753%… The current premium of BCHG is at 351%.

The premium for Litecoin is soaring above BCH reflecting a higher buying pressure for LTC. However, the total AUM for Bitcoin Cash [BCH] is more than the AUM for Litecoin [LTC]. Its been only two days since the launch of these two products and the excessive premium is expected to normalize. Nevertheless, the update also notes that the premium for ETHE is over 90% and was as high as 800% in June.

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The premium on these products, however, are indicative of another incentive driving the interest in these assets. The high premium attracts institutions looking to benefit from the difference in the rate of loaning undercollateralized crypto compared to the premium rates. The premium rates of GBTC fell around mid-July as the lock-in period expired. It is expected to occur again around October 2021. These premiums are also expected to drop post the launch of Bitcoin ETFs. 

How long do you think before the SEC approves a Bitcoin ETF? Please share your views with us. 

Grayscale Crypto Trust Fund Tops $6 Billion in AUM
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Grayscale Crypto Trust Fund Tops $6 Billion in AUM
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Grayscale Crypto Trust Fund tops $6 billion in AUM (Asset Under Management). Bitcoin [BTC] accounts for $5 billion (83.33%) of the total assets. The AUM under the Ethereum Fund is 876.6 M, accounting for nearly 14.6% of the asset at Grayscale. The update from Arcane Research on Grayscale LLC.’s AUM point towards a high institutional interest in these assets. 
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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

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The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

Author: Nivesh Rustgi




Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Source: https://coingape.com/grayscale-crypto-trust-fund-6-billion/

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Three reasons why DeFi’s performance will overshadow Bitcoin’s soon

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While Bitcoin’s price was rallying on the price charts, DeFi tokens were adding TVL in both BTC and ETH. However, after the price dropped by 8.64%, DeFi’s TVL soon plummeted from $14.35B on 23 November to $12.7B in less than a week. This didn’t mean that DeFi’s rally was over though. In fact, while the top 15 DeFi tokens based on performance included Alpha, Yield Farming DAI, EASY, XOR, and HEGIC, tokens like SUSHI, AAVE, and YFI have offered double-digit returns of over 70%. 

Why DeFi is set to outperform BTC returns by end of 2020

Source: Twitter

Apart from double-digit returns, there have been several recent developments in DeFi over the past week, with each of these developments suggesting that the price rally may have just started. Here are some facts, 

  • Saffron Finance and Barnbirdge are leading the charge in a risk tranch-based category of DeFi investment
  • Yearn has announced a merger that takes it a step closer to being a DeFi mega-bank
  • Also, DeFi liquidations soared to a record $92M on 27 November 2020 and Compound was the hardest hit

DeFi’s rally has also been supported by its inverse correlation with Bitcoin. Further, despite its high correlation with BTC, ETH’s price has sustained itself above the $500-level, something that could be bullish for DeFi going forward. In fact. Anton Chashchin, Commercial Director at CEX.IO Loan, told AMBCrypto, 

“The traditional markets have been considered a safe harbor for investors to build their portfolios and reach their financial goals. But after the COVID-19 outbreak, institutional as well as retail investors have been looking for new solutions to protect their wealth from inflation and decentralized finance (DeFi) has been one of them.”

He added,

“Data from Dune Analytics reveals that since the beginning of October the total value locked in decentralized applications rose nearly 28% to hit a record high of over $14.4 billion. Meanwhile, the number of users shot up by 62% since then to reach nearly 1 million and requests from institutional investors are increasing by roughly $30 million per week.”

The aforementioned increase in demand and trader interest in DeFi may be another driver behind its double-digit gains. Additionally, it can also be argued that volatility and network momentum drops in Bitcoin’s market may turn heads towards the DeFi space. Why DeFi is set to outperform BTC returns by end of 2020

Volatility of DeFi tokens || Source: Coinmetrics

The supply shortage narrative may not be enough for Bitcoin’s price rally. Price volatility and network momentum is key to driving the cryptocurrency’s price to its ATH. However, both metrics have dropped of late, based on data from Woobull charts. On the contrary, DeFi may be shifting gears to replace BTC as the top-performing asset in December 2020 in light of all the aforementioned developments, the rapidly increasing volatility, and demand. 

Source: https://eng.ambcrypto.com/three-reasons-defi-bitcoin

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Ripple Sells Significant Portion of Its Stake in Payments Giant MoneyGram

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Ripple is selling a substantial portion of its stake in MoneyGram for the first time since placing its initial investment in the money remittance giant in June 2019.

According to a document filed by Ripple on November 27th at the U.S. Securities and Exchange Commission (SEC), the fintech startup owns 6.23 million shares of MoneyGram with a warrant to purchase more shares to the tune of 5.95 million.

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The document reveals that Ripple authorized an undisclosed financial entity to sell four million of its shares in MoneyGram.

After selling, Ripple will still own at least 2.23 million MoneyGram shares and will reserve the right to purchase an additional 5.95 million shares of the remittance giant.

Ripple and MoneyGram entered into a partnership in June 2019 for foreign exchange settlements and cross-border payments. As part of the deal, Ripple made a $50 million commitment to MoneyGram, which it completed in November 2019.

MoneyGram has used Ripple’s services to settle cross-border payments in Mexico, Europe, Australia, and the Philippines in seconds, says MoneyGram CEO Alex Holmes.

“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry – for the first time ever, we’re settling currencies in seconds.”

Valued at $10 billion, San Francisco-based Ripple is emerging as one of the fastest-growing fintech companies in the world. The company owns over half of the total supply of the crypto asset XRP. At time of publishing, XRP’s total market cap is $27.8 billion, according to CoinMarketCap.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Source: https://dailyhodl.com/2020/11/29/ripple-sells-significant-portion-of-its-stake-in-payments-giant-moneygram/

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Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

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Bitcoin has a way of surprising people. This week was no exception. A few days ago, almost everyone believed that the cryptocurrency is inevitably headed to a new all-time high. And how could they not? BTC was trading at a few hundred USD below the record from back in 2017. Unfortunately, things took a turn for the worst.

Yesterday was undoubtedly a bad day for bitcoin as it plunged a total of around $3,000 in less than 24 hours. From a high of about $19,500 down to $16,200, the bears poked and showed their faces. The entire market lost around $80 billion of its capitalization as altcoins actually had it worst.

During the market dive, Bitcoin’s dominance actually increased, showing that not only altcoins failed to hold their ground, but they dropped harder than BTC. Since then, there has been a slight recovery and at the time of this writing, the primary cryptocurrency is trading at around $17,000.

The move was seemingly propelled by the news that US regulators might seek to require identity verification from crypto wallet providers. Coinbase’s CEO, Brian Armstrong, commented on the matter, expressing his worries that if the new rules are implemented, they would be rather harmful to the users and the industry, in general.

At the same time, the popular cryptocurrency exchange OKEx opened withdrawals for the first time since they were shut down around a month ago, which might have prompted users to cash out the profits that they have been sitting on. In fact, CryptoPotato reported that around $500 million were withdrawn from the exchange as the crash started to take place.

In any case, the results are here, and it remains particularly interesting to see where will bitcoin go from here.

Market Data

Market Cap: $512B | 24H Vol: 181B | BTC Dominance: 62%

BTC: $17,132 (-7.98%) | ETH: $516.86 (+1.71%) | XRP: $0.56 (+74.08%)

Bitcoin Worth $500 Million Withdrawn From OKEx as Users Look for Other Alternative. Data shows that users withdrew a total of 29,300 BTC from the popular cryptocurrency exchange OKEx right after it resumed full functionality. This happened just as bitcoin plunged $3,000 in a matter of 24 hours. The exchange also resumed the withdrawals a day earlier than announced and during the Chinese trading hours.

Bitcoin Black Friday 2020: The Sales You Better Not Miss. It’s the end of November, and with this comes the long-anticipated shopping season. For many, this is a time to enjoy massive sales. We’ve taken the liberty of listing a few sales within the cryptocurrency field that aficionados might find interesting.

Facebook’s Libra Could Reportedly Arrive in January 2021 in a Scaled-Down Version. Libra, Facebook’s long-awaited cryptocurrency project, might be set to launch in early 2021. However, the version that’s potentially hitting the market is scaled-down and specifically intended to abide by the regulations of Switzerland’s FINMA.

Research Suggests Satoshi Nakamoto Launched Bitcoin From London. New research shows that activities associated with Satoshi Nakamoto from 2008 and 2010 might have taken place in London when Bitcoin’s network went live. This brings the experts a step closer to identifying who’s behind the legendary pseudonym.

6 Possible Reasons For Bitcoin’s $3,000 Daily Price Crash. Bitcoin went through a massive crash two days ago when it lost around $3,000 of its value in a sudden red candle. These are six reasons for which this may have happened and a brief outline of what might be next to come.

Coinbase CEO Fears Rumored Regulations Proposed By The Trump Administration. Brian Armstrong, the CEO of the leading US-based cryptocurrency exchange Coinabse, has said that he’s worried about the rumored regulations concerning third-party wallet providers having to identify their users. He said that this might harm users and the entire ecosystem.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Chainlink, and Stellar Lumens – click here for the full price analysis.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Source: https://cryptopotato.com/bitcoin-temporary-correction-or-no-ath-this-year-the-crypto-weekly-market-update/

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