In the cryptocurrency news today, Grayscale investments, a Bitcoin and cryptocurrency asset management firm, is planning a massive transfer of crypto holdings worth billions of dollars to Coinbase, a United States trading platform and crypto wallet provider, according to Forbes. This move is set to be the largest transfer of cryptocurrency assets in a single day in cryptocurrency history. Grayscale made an announcement today stating that Coinbase Custody will be in charge of the safekeeping of its assets. Digital manager, Grayscale – which crowned itself as the largest Bitcoin and digital currency manager – will transfer close to $3 billion to Coinbase in twelve hours.
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Last month, the investment company announced that it has recorded $2.7 billion of the volume of assets under its management. This is an all-time high for the Investment company. Much of the assets are held in Bitcoin, Ripple’s XRP, Ethereum, and Litecoin.
Coinbase Custody is an independently-capitalized business to Coinbase which functions as a standalone organization. It is going to supervise the crypto assets transferred by Grayscale which include Bitcoin, Ethereum, Ripple’s XRP, and a host of other major crypto tokens. Coinbase Custody will also oversee Grayscale’s Digital Large Capitalization Fund. This capitalization fund delivers more frontage for Bitcoin and other cryptos via a market-cap-weighted portfolio.
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The Chief Executive Officer of Coinbase Custody, Sam McIngvale, said, “Grayscale and Coinbase have paved the way for the provision of safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established and trusted partner that values its clients and customers, therefore all its service providers are expected to do the same. As a state-chartered trust company in New York, Coinbase Custody has earned the same respect and trust as national banks. We also offer some of the widest and deepest insurance coverage in the cryptocurrency industry”.
This transfer move is happening at a time when Bitcoin and other cryptocurrency investor are eagerly awaiting news on how regulators around the world will react to the plans of the social media giant, Facebook, launching its cryptocurrency which will be called Libra. The yet-to-be-launched Libra crypto has been under immense scrutiny since Facebook announced plans to launch it sometime next year.
Speculations are ongoing that the rise in Bitcoin price in the crypto market this year is as a result of some large companies’ increasing involvement in the crypto market. iPhone manufacturers, Apple, and social media giant, Twitter, are considering Bitcoin and other cryptos as a potential source of generating profits for their respective bodies.
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The $2.7 billion worth of assets under the management of Grayscale is an all-time high value for the company; with the value going up three times that attained in the previous quarter.
Grayscale is one of the companies that has enjoyed the benefits of Bitcoin’s and other cryptocurrencies (Ethereum, Ripple’s XRP, and Litecoin) rise in market prices this year.
Last week, Grayscale reported that one-third of the investors in the United States would consider buying Bitcoin. If this eventually occurs, about 21 million investors are likely to join the crypto market.
According to Coinbase, they have signed up to 30 million users since their inception seven years ago. The largest cryptocurrency exchange platform has added about eight million news users in the last year.