Grayscale Investments broke through the $30 billion net crypto asset under management (AUM). The company said that the huge growth is due to institutional investors, especially hedge funds.
- Grayscale revealed on Friday that its total net crypto assets under management is currently $30.4 billion. The leader is Grayscale Bitcoin Trust, which currently has more than 24 billion U.S. dollars in AUM, followed by Ethereum Trust, which has more than 5 billion U.S. dollars in AUM.
- Last year, Grayscale had only $2 billion in assets under management at the beginning, and by the end of the year it exceeded $20 billion, an increase of 900%.
- Grayscale attributed this substantial increase to institutional investors, especially hedge fund investments. CEO Michael Sonnenshein said: “There is no longer professional risk in investing in digital currency asset classes-if you don’t pay attention to digital currency, there may be more professional risks.”
- The company wrote in its report for the fourth quarter of 2020, “The institutions are here,” and added that in the fourth quarter, institutions accounted for 93% of all capital inflows during the period, or about $3 billion. “The average inter-agency commitment is also growing at an alarming rate,” Grayscale pointed out in detail, noting that “the average commitment of the organization was US$6.8 million, which was higher than the US$2.9 million in the third quarter of the 20th quarter.”
- After ending its trust in XRP, Grayscale now offers nine different cryptocurrency investment products. The remaining products include Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Trust, Horizen Trust, Litecoin Trust, Stellar Lumens Trust, Zcash Trust and digital large-cap funds.
- Of all the crypto products offered, only three are not publicly traded on the OTC market: Horizen Trust, Stellar Lumens Trust and Zcash Trust. The remaining shares of trusts and large-cap funds are now unrestricted and can be sold through any brokerage account.
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