Grayscale Gains Additional $3B to Record $16.4B Asset Under Management

On 14 December 2020, Grayscale announced publicly that their Asset Under Management had increased to $13 billion for the first time. Interestingly, this has increased to $16.4 billion in a little over a week. 

Grayscale Investment Trust LLC (OTCMKTS: GBTC) is continuing its impressive performance in 2020 with its Asset Under Management rising to $16.4 billion. This is a little over $3 billion addition from the $13 Billion Assets Under Management reported last week. The success story of Grayscale is an indication of the overall performance of the crypto market as it provides a clear overview of institutional and retail interest.

In their Q3 report, they indicated that the institutional investment had increased by 81% with 57% of investors diversifying their portfolio of multi-product investments.

On 14 December 2020, the company announced publicly that their Asset Under Management had increased to $13 billion for the first time. Interestingly, this has increased to $16.4 billion in a little over a week.

Looking at the holdings allocation on the products, it appears that Bitcoin enjoyed the lion share with the Grayscale Bitcoin Trust recording about $14.1 billion. This is understandable as Bitcoin remains the most popular and most trusted cryptocurrency among the thousands in the system. The Grayscale Ethereum Trust on the other hand accounted for $1.81 billion of the Asset Under Management.

The likes of XRP, Zcash, and XLM surprisingly have less significant holdings. However, Litecoin, Bitcoin Cash, and Ethereum Classic boast a fair share of the Assets Under Management with holdings of $125 million, $70.7 million, and $67.7 million respectively. The surprise addition is Ethereum classic which is not as popular as some of the less significant holding assets like XRP.

Comparing these to that of the holdings of each digital asset trust on 14 December is nothing but positive growth across all products. Out of the $13 billion Assets Under Management recorded last week, Bitcoin had $10.82 billion shares with Ethereum recording $1.72. Litecoin, Bitcoin Cash, and Ethereum Classic recorded a share of $74.8 million, $58.6 million, and $74.3 million respectively. On December 10, 131,455 Ether valued at $74 million was added to the Ethereum Trust Fund indicating a massive growth in that area as well.

Michael Sonnenshein, managing director at Grayscale Investment stated that:

“Throughout 2020, we are seeing a new group of investors who are Ethereum first and in some cases Ethereum only. There’s a growing conviction around Ethereum as an asset class.”

2020 has been a very good year for Grayscale Investment Trust having recorded massive growth of holdings across products. In just one week in November 2020, its Bitcoin holdings increased by 15,000. In just one week in December, its Bitcoin holdings increased by 56,000, which is very impressive. The COVID-19 implications were part of the reasons why Bitcoin interest soar so high in 2020 with Institutional interest rising by a high margin. Most companies seek to take advantage of the scarcity of Bitcoin to hedge against inflation.

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John K. Kumi

Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.

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