Grayscale Investments, which at last check boasts approximately $2.7 billion in assets under management, is putting its money where its mouth is, so to speak. The crypto investment firm is poised to move “the assets for each of its products” to Coinbase Custody, the independent custodial arm of the U.S.-based crypto exchange, today. In doing so, they are sending a message to other big investors to come on in, the water is fine.
That’s nearly $3 billion in crypto assets across major coins including bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Stellar Lumens, XRP, and Zcash. Coinbase Custody will also hold the assets from Grayscale’s trio of investment trust products: Grayscale Bitcoin Trust, Grayscale Ethereum
Trust, and Grayscale Ethereum Classic Trust as well as the Grayscale Digital Large Cap Fund.
According to Bloomberg, Coinbase Custody had already attracted $1 billion-plus in cryptocurrencies on its platform, as of May 31. The addition of Grayscale’s crypto assets will bolster the size of assets by nearly threefold and has the potential to attract more institutional investors to the platform.
When other big investors including hedge funds and the like see that Grayscale is moving billions of dollars’ worth of the underlying crypto assets in its investment products to Coinbase Custody, they may be more inclined to do the same thing. Custody has been one of the sticking points keeping institutional capital sidelined, but the regulated nature of Grayscale and Coinbase stands to change that.