Cryptocurrencies
Demand Surges for Biggest Crypto Fund Amid Arbitrage Play
- Grayscale’s trusts trade at a premium over underlying assets
- Funds offer private placements to accredited investors
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Grayscale Investments LLC generated a lot of buzz when its cryptocurrency trusts attracted more than $900 million -- mostly from institutional investors -- in the second quarter, nearly double its previous quarterly high and bringing total assets under management to over $4 billion.
While the surge in demand can be seen as a sign that large asset managers are finally embracing digital assets, many investors were likely taking advantage of one of the more popular arbitrage opportunities in crypto.