Grayscale Investments has put a temporary hold on new client sign ups for six of its cryptocurrency trusts.
According to reports from Decrypt and Coindesk, the firm announced that it would stop accepting new investors for its Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin and Digital Large Cap Fund trusts.
Grayscale spokesperson Corey Law told Decrypt that the company had reached a stage in the year where the public window for investors had closed. The firm periodically closes public windows to allow ‘private placement’ rounds to take place. This means that existing clients can still make investments in the trusts.
The report also notes that a six month lock-up period for shares in the Bitcoin Trust that were bought in June 2020 are coming to an end, which could also factor into the firm’s temporary halt on new investment signups.
Massive year for Grayscale’s Trusts
Grayscale has had a massive year in terms of growth in value of its various cryptocurrency trusts. It has posted back-to-back record breaking quarters in 2020 and its current total assets under management (AUM) has surpassed $15.7 billion as of December 21.
12/21/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) December 21, 2020
The Grayscale Bitcoin Trust accounts for a major portion of its AUM, currently valued at $13.3 bln. Over the past six months Grayscale has purchased over 160,000 BTC. The Ethereum Trust has seen its AUM growth to around $1.8 bln.
In August Grayscale had a net AUM of $6.1 billion across its various cryptocurrency trusts and has seen close to a threefold increase in its AUM in the space of four months.