Tags: Investment trusts

Some pensions funds that experimented with emerging assets like cryptocurrency have lost millions of dollars.

Nearly $1.8 billion flowed into crypto investment products over the last 10 weeks, which hasn’t been seen since Bitcoin futures were launched in October 2021.

Nearly $700 million of the $873 million trust assets allowed to be sold by FTX comes from Grayscale’s flagship product, the Grayscale Bitcoin Trust, or GBTC.

Bloomberg ETF analyst James Seyffart thinks Grayscale’s Ether futures ETF application is just a ploy to corner the SEC to approve its spot Ether ETF.

Earlier in the day, BlackRock registered corporate entity “iShares Ethereum Trust” in Delaware, the first hint that a filing for a spot Ethereum ETF filing was imminent.

The huge asset manager was denied approval for the Wise Origin Trust last year; now, it is joining a long line of spot fund hopefuls.

Galaxy Digital CEO Mike Novogratz was among those over the moon with the news, others warn it could be the start of a major institutional takeover.

While the interest in crypto investments was on the rise last year among the home offices, 2023 saw a massive decline in such investors‘ certainty about the digital assets market.

Grayscale’s Ethereum, Litecoin and Bitcoin Cash Trusts are at steep discounts as concerns whirl around Digital Currency Group’s liquidity.