Billions in Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash and More on the Move As Asset Manager Shifts to Coinbase
Grayscale Investments, the largest digital currency asset manager, today announced that Coinbase will serve as the company’s custodian for its single-asset investment products and its diversified Digital Large Cap Fund. The agreement will trigger massive transfers of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Stellar Lumens (XLM), XRP and Zcash (ZEC) to Coinbase Custody.
Says Sam McIngvale, Coinbase Custody chief executive officer,
“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. As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.”
Grayscale currently has $2.5 billion net assets under management.
8/1/19 UPDATE: Holdings per share, net assets under management and digital assets per share for our investment products.
— Grayscale (@GrayscaleInvest) August 1, 2019
Crypto whale watchers can expect to see the holdings take flight in huge crypto transfers, as Grayscale’s assets under management shift to Coinbase Custody.
Coinbase Custody is a fully regulated entity and is an independent, New York Department of Financial Services (NYDFS)-registered company, operating under NY Banking Law.
“As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.”
Coinbase, the largest crypto exchange in the US, is aiming to build infrastructure that will attract institutional clients en masse by providing more stability and security for digital assets. The company continues to see explosive growth. Since launching in 2012, it has opened accounts for 30 million users, with eight million new users added in the last 12 months.