According to the latest Grayscale Investments data tweet, its largest holdings are in BTC (bitcoin). Grayscale Bitcoin Trust has up to $16.3 billion in the crypto-asset list. The company’s Ethereum Trust currently has $2.1 billion in the ETH (ether) AUM. Grayscale also contains trust for $151.3 million LTC (litecoin) and BCH (bitcoin cash).
In what appears as embracing the altcoins and BTC (Bitcoin) by big money clients and institutional investors, the total Assets Under Management (AUM) by Grayscale has topped $19billion. This is a significant increase from $16.4billion, which was reported one week ago.
“Grayscale did hit the AUM milestone on the 28th of December. Grayscale Bitcoin Trust holds by far the largest chunk of total assets, which is currently at $16.3billion,” revealed CoinDesk.
The recent BTC (Bitcoin) rally to new highs recently recorded in the past weeks started as a chain reaction. It was a precedent a few months back when Wall Street firms and institutional investors began betting big on BTC (Bitcoin).
The investment which was made by the likes of PayPal Holdings Inc (NASDAQ: PYPL), Square Inc (NYSE: SQ), and MicroStrategy Incorporated (NASDAQ: MSTR) did promote embracing of the digital assets by other companies.
BTC (Bitcoin) price continued soaring in response to the increase in demand for the coin all thanks to the chain reaction. Institutions such as Grayscale helps in serving institutional investors benefited a lot from the new demand. This is the reason behind the continued increase in the company’s AUM. Apart from BTC, Grayscale’s ETH AUM is currently worth $2.1 billion. Other smaller holdings like ZCash, XRP, and LTC also played a crucial part in helping the total AUM of Grayscale get to a new milestone.
Grayscale Anticipates Huge Boost in 2021
Grayscale’s patronage spate record in the last two quarters of 2020 has been a case for improved performance which provided the tempo is well maintained.
As indicated earlier, highly liquid companies’ continued embrace of cryptocurrency assets will positively react to BTC (Bitcoin) price. This will help make people start having an interest in BTC. As the asset class is still relatively young, altcoins and Bitcoin do have tremendous growth room. Given that the adoption rate is not yet optimized due to regulatory provisions in most countries.
Grayscale, together with other hedge funds, does have an excellent timeline to compete for new clients who are getting into the market. Grayscale has been at the forefront among the institutions helping drive ETH, BTC, and other types of digital currencies acceptance. This ensures it enjoys the dividends of its work through the impressive AUM figures, which do not come as a surprise.
About Grayscale Investments
Grayscale Investments is a subsidiary of Digital Currency Group and specializes in the management of cryptocurrency investment funds. Digital Currency Group owns digital media and cryptocurrency news company Coindesk.
Grayscale Investments was launched back in 2013 by Digital Currency Group. It manages different investment trusts that it refers to as private investment vehicles for vast LTC (LiteCoin), BCH (Bitcoin Cash), ZEC (Zcash), ETC (Ethereum Classic), and ETH (Ether). The beliefs are passive investment funds that track digital asset prices in real-time. Recently, Grayscale Investments was supposed to transfer up to $3billion in assets to Coinbase Custody. This would have been of the largest ever cryptocurrency transfers.