Bitcoin Trust Grayscale Shows Lagging Spot Market In October Digital asset manager Grayscale Investments may have disappointed investors in October after the company reported record $ 1 billion in inflows in the third quarter of 2020.

Bitcoin trust Grayscale lags behind the spot market in October

Digital asset manager Grayscale Investments could disappoint investors in October, after as how the company reported a record inflow of $ 1 billion in third quarter 2020.

"Grayscale products generally lagged behind the market," CryptoCompare said in a new report..

Exchange traded products (ETPs) like Grayscale trusts are not rigidly tied to the price of the underlying asset and may be ahead or lagging behind at certain intervals. Grayscale is the undisputed leader among cryptocurrency ETP providers with $ 5.8 billion in Bitcoin trust and $ 1.25 billion in Ethereum trust. By comparison, ETC Group and Wisdom Tree's Bitcoin products have $ 60.1 million and $ 34.5 million under management, respectively..

However, CryptoCompare notes that the ETPs of the last two companies outperformed the spot market in the 30-day period, adding 7.7% and 7.3%, respectively, while Bitcoin gained 6.6%.. In this way, their investors, excluding commissions, could receive higher returns than participants in the spot market.

Grayscale's Bitcoin and Ethereum trusts have grown 3% and 3.4%, respectively, over the same period. As a result, the former lagged behind the market, and the latter surpassed it.

“The Grayscale ETHE / USD trust product lagged 10% behind the CCCAGG ETH / USD spot index. However, it showed a higher yield (up to 16%) during the second week of October, while ETH began to rise in value, ”writes CryptoCompare.

At the same time, the diversified product Grayscale Digital Large Cap Fund (GDLC), which includes Bitcoin, Ethereum, XRP in its basket, Bitcoin Cash and Litecoin, fell 19.9%, becoming the most unfortunate of the reviewed.



In general, CryptoCompare noted the superiority of the seven leading cryptocurrency ETPs over the MVDA index, which consists of the 100 largest digital assets.

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