Grayscale Temporarily Stops Accepting New Clients in Six Crypto Trusts

Photo: Coindesk

Grayscale Investments LLC has temporarily stopped accepting new investors in six funds, including its Ethereum Trust and Bitcoin Trust funds, both gateways for institutional crypto bets.

• The crypto asset manager's website said Monday that its Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin and Digital Large Cap Fund Trusts are "currently unavailable" for new investors.
• Grayscale periodically closes off its crypto trusts to so-called "private placement" rounds. Such action happened repeatedly to GBTC in Q4 2019 – so the Monday halting is not unusual.
• Even with the temporary closing to new investors, Grayscale will still be able to obtain added capital from existing investors until it reopens again to new investors.
• On Monday JPMorgan analysts wrote that a dramatic slowdown in GBTC inflows could jack up the odds of a bitcoin (BTC, -4.26%) price correction.

Reprinted from Coindesk, the copyright all reserved by the original author.