Digital asset investment manager Grayscale has resumed accepting new investments in almost all of its cryptocurrency trusts. The investment manager has suspended the inflow of new funds from six trust funds in late December 2020. At the same time, the recent six-month lock-up period for trading Bitcoin trust funds denominated in GBTC is also coming to an end.
As of this writing, although Grayscale Ethereum Trust is still unavailable, products such as Grayscale Bitcoin Trust and Grayscale Digital Large Capital Fund Trust are available to new investors. Grayscale XRP trust is inactive and may remain active. In early January, shortly after news of a major lawsuit filed by the US Securities and Exchange Commission against Ripple came out, the fund manager liquidated its asset holdings.
Grayscale regularly stops and resumes the inflow of new investor funds; during the closure period, these funds will continue to be open to private equity funds. In addition, all investors in the Grayscale Cryptocurrency Trust must accept a six-month lock-up period for newly purchased shares, after which they are free to sell their shares on the open market to unauthorized investors.
Cryptocurrency investors pay close attention to Grayscale’s actions, and the company has developed into the world’s largest cryptocurrency asset management company. As of January 11, Grayscale’s various cryptocurrency funds managed US$24.5 billion in assets. In early January, Cointelegraph reported that Grayscale’s purchases of Bitcoin were three times higher than the number of minted new coins, thus limiting fund managers’ active accumulation for a year.
As of press time, Bitcoin is up nearly 10% this week, trading at $35,833. With the opening of new investments, the six-month lock-up period resumed. Some analysts claimed that at the end of this period, the Bitcoin spot market was pushed up as Grayscale’s GBTC stock entered the public market.