Bitcoin saw brief but massive price drop, all the way down to the $44,900 range which caused those with massive holdings to take a big hit. One of the biggest of those was Grayscale.
One of the biggest crypto investors, Grayscale tweeted that their total amount of crypto assets under management is $37.9 billion. Just one day earlier the crypto hedge fund held $42 billion in crypto including Bitcoin, Ethereum, and Bitcoin Cash.
The worth of Bitcoin held by Grayscale dropped from $35.2 billion to $31.9 billion. Ethereum held by the Grayscale Ethereum Trust also fell from being worth $5.58 billion to $4.87 billion.
Within hours on Tuesday Bitcoin, the world’s largest cryptocurrency in terms of market cap, saw a decrease of over 20%. While it did drop from as high as $58,000 to the low of $44,900, it did recover quickly. By press time, Bitcoin price was already back to trading above $51,000.
As could be expected, this also caused shares of the Grayscale Bitcoin Trust to fall as well. GBTC dropped as much as 13.3% on Monday though it did gain some of that back as Bitcoin’s price corrected.
Bitcoin Hater Peter Schiff Comments On Grayscale
Noted Bitcoin hater Peter Schiff also commented on Grayscale. The CEO and Chief Global Strategist of Euro Pacific Capital noted on Tuesday that the most popular Grayscale crypto-based products that are traded at discount as net asset value all day long.
Schiff added that “If this continues, there may not be more inflows from investors who want to buy more Bitcoins,” while also saying that the market always needs new buyers so that existing BTC holders leave their assets to them.
The Grayscale Bitcoin Trust is a digital currency investment product that individual investors can buy and sell in their own brokerage accounts. In January of 2020, it became an SEC reporting company, registering its shares with the Commission. This designated the Trust as the first digital currency investment vehicle to attain status of a reporting company by SEC.