Grayscale Investments has passed the milestone of $ 30 billion in Net Crypto Assets Under Management (AUM). The company says the tremendous growth has come from institutional investors, particularly hedge funds.
- Grayscale announced on Friday that its net crypto assets under management are now $ 30.4 billion. At the top is the Grayscale Bitcoin Trust with an AUM of currently more than 24 billion US dollars, followed by the Ethereum Trust with an AUM of more than 5 billion US dollars.
- Last year, Grayscale started with just $ 2 billion in assets under management and ended the year with more than $ 20 billion, an increase of 900%.
- Grayscale attributed the massive growth to investments by institutional investors, especially hedge funds. CEO Michael Sonnenshein says: “There is no longer a professional risk to invest in the asset class for digital currencies. There is probably a higher career risk if you don’t pay attention to it. “
- In its fourth quarter 2020 report, the company wrote that “institutions are here,” adding that institutions accounted for 93% of all capital inflows in the fourth quarter, which is roughly $ 3 billion. “The institute’s average engagement is also growing significantly,” said Grayscale. “The institutes’ average engagement was $ 6.8 million, compared to an average of $ 2.9 million in the third quarter of 20.”
- Grayscale now offers nine different cryptocurrency investment products after the XRP trust was discontinued. The remaining products are the Grayscale Bitcoin Trust, the Bitcoin Cash Trust, the Ethereum Trust, the Ethereum Classic Trust, the Horizen Trust, the Litecoin Trust, the Stellar Lumens Trust, the Zcash Trust, and the Large-Cap Digital Fund.
- Of all the crypto products offered, only three are not publicly traded on OTC markets: the Horizen Trust, the Stellar Lumens Trust and the Zcash Trust. The shares of the remaining trusts and the large-cap fund are now unlimited and sold through any brokerage account.
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