Grayscale Investments has passed the $ 30 billion mark in net crypto assets under management (AUM). The company says the tremendous growth is due to institutional investors, especially hedge funds.
- Grayscale revealed on Friday that the total net crypto assets under management are now $ 30.4 billion. Leading the way is Grayscale Bitcoin Trust, which currently has over $ 24 billion in AUM, followed by the Ethereum Trust with over $ 5 billion in AUM.
- Last year, Grayscale started with just $ 2 billion in assets under management and ended the year with more than $ 20 billion, up 900%.
- Grayscale attributed the tremendous growth to investment by institutional investors, especially hedge funds. CEO Michael Sonnenshein says, “There is no longer a professional risk of investing in the digital currency asset class – there is probably more career risk if you don’t pay attention to it.”
- In its Q4 2020 report, the company wrote that “Institutions are here,” adding that in the fourth quarter, institutions accounted for 93% of all capital inflows during the period, or approximately $ 3 billion. “Average institutional commitment is also growing at a significant pace,” Grayscale commented, noting that “average institutional commitment was $ 6.8 million, compared to an average of $ 2.9 million in 3Q20.”
- Grayscale now offers nine different cryptocurrency investment products after the discontinuation of the XRP trust. The other products are Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Trust, Horizen Trust, Litecoin Trust, Stellar Lumens Trust, Zcash Trust and the digital large-cap fund.
- Of all the crypto products on offer, only three are not publicly traded on OTC markets: the Horizen Trust, Stellar Lumens Trust, and Zcash Trust. The shares of the remaining trusts and the large-cap fund are now unlimited and sold through a brokerage account.
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