Grayscale Moves $2.7 Billion in Crypto Assets in a Single Day (Bitcoinerx)

In what is believed to be one of the largest single-day crypto assets transfers, Grayscale Investments has transferred more than $2.7 billion in cryptocurrencies to Coinbase Custody.

The New York-based digital assets management company announced on Friday that effective July 29, 2019, Coinbase Custody would be serving as custodian for the underlying crypto assets of its single-asset and diversified investment products.

According to the press release, Grayscale’s transferred crypto holdings include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC).

In addition, Coinbase Custody will oversee Grayscale’s publicly quoted cryptocurrency trusts as well as its Grayscale Digital Large Cap Fund.

We’re thrilled to welcome @GrayscaleInvest, the world’s largest digital currency asset manager, as the most recent firm to trust us with their clients’ assets

— Coinbase Custody (@CoinbaseCustody) August 2, 2019

Speaking about the development, Coinbase Custody CEO Sam McIngvale said:

Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same.

He also added that Coinbase Custody is held to the same fiduciary standards as national banks and that it offers some of the “broadest and deepest insurance coverage in the crypto industry.”

As for the particulars of the custody agreements, each one is for an initial three-year period for which Coinbase Custody is being paid a fee based on an undisclosed percentage of Grayscale’s total assets under custody.

Grayscale’s Record-breaking Growth

2019 has been one for the record books as far as Grayscale is concerned. In its Q2 2019 Digital Asset Investment Report, the company notes that its total assets under management (AUM) had reached $2.7 billion as of the end of June – nearly triple the $926 million AUM reported for the end of Q1 2019.

In addition, the company’s Bitcoin investment product – the Grayscale Bitcoin Trust – is up more than 200% on the year according to the Wall Street Journal. By comparison, the S&P 500 Index is up 16.96% while the Global Dow is up just 9.90% over the same period.

Total investments in Grayscale products for Q2 2019 was $84.8 million – nearly double that of Q1 – bringing total investments for H1 2019 to $127.4 million.

Big but Not That Big

While the transfer of Grayscale’s $2.7 billion in crypto assets in a single day is staggering, it is not the biggest single-day transfer – not by a long shot.

In December 2018, Coinbase reported that it had transferred more than $5 billion in cryptocurrency from Generation 3 to Generation 4 of its cold storage system.

The transfer represented 5% of all BTC, 8% of all ETH, and 25% of all LTC in circulation, among other cryptocurrencies.

Images courtesy of DepositPhotos

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