It is, without a doubt, that Grayscale has effectively cornered the cryptocurrency industry. Bitcoin’s prices have unfolded tremendously over the holiday week, thanks to the growing institutional investor interest as well as the retail FOMO.
Owing to this, the digital asset manager, Grayscale Investments has hit yet another milestone, after it touched $19 billion in assets under management [AUM] on the 28th of December, up from the $16.4 billion announced just last week. With this, the figures have tripled since the start of November.
Notably, Grayscale’s trust for XRP witnessed a significant decline all the way from $13.7 million AUM a week ago to the current $11.2 million. This can be attributed to the recent SEC-Ripple fiasco which has prompted intense sell-off.
Nevertheless, Grayscale products have attracted massive capital inflows over the course of the year. According to the latest data by the NY-based platform showed that Bitcoin continued to be its largest holdings with a staunching $16.3 billion followed by Grayscale Ethereum Trust [ETHE] at $2.1 billion, Grayscale Litecoin Trust [LTCN] with $151.3 million.
The world’s leading crypto asset management firm had garnered a lot of traction recently due to its DropGold advertising campaign. To top that, the company reported a growing interest in Ethereum earlier this month.
Besides, Ki Young Ju, who happens to be the CEO of CryptoQuant, revealed that out of the total $186 billion Bitcoin realized market cap, 16% is owned by institutional investors. This comes after Grayscale’s third-quarter investment report disclosed that 80% of investments to its products came from institutional investors, which were dominated by hedge.
In addition to the rising Bitcoin price, yet another factor that has made the US-based platform, realy popular among the experienced and the novice traders alike was the weakening dollar which has triggered institutional adoption. Furthermore, it is no news that certain major Wall Street firms have also integrated digital assets in their investment portfolio to hedge against dollar depreciation.
“You all clearly want Grayscale to hit $20 billion in AUM in 2020. I’ll take it”