Grayscale Investments has surpassed the milestone of $30 billion in net crypto assets under management (AUM). The company says the tremendous growth is due to institutional investors, particularly hedge funds.
- Grayscale revealed Friday that its net total crypto assets under management now stands at $30.4 billion. In the lead is Grayscale Bitcoin Trust, which currently has over $24 billion in AUM, followed by the Ethereum trust with more than $5 billion in AUM.
- Last year, Grayscale started off with just $2 billion in assets under management and ended the year with more than $20 billion, representing a 900% increase.
- Grayscale attributed the massive growth to investments from institutional investors, particularly hedge funds. CEO Michael Sonnenshein says: “There’s no longer professional risk of investing in the digital currency asset class — there’s probably more career risk in not paying 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 the capital inflows during the period, or approximately $3 billion. “The average commitment among institutions is also growing at a significant pace,” Grayscale detailed, noting that “The average commitment from institutions was $6.8 million, up from an average of $2.9 million in 3Q20.”
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- Grayscale
