It was just the beginning of the year 2020 when Grayscale had provided an update in regards to its total AUM. At that time, the firm had revealed that its overall Assets Under Management (AUM) were around $23 billion. While the majority of the portion was held by Grayscale’s Bitcoin Trust (GBTC), which was around $20 billion.
Right after a month, the firm has revealed that it has experienced significant growth with respect to its overall AUM. As of now, Grayscale has managed to achieve the $30 billion AUM benchmark and the number is constantly growing.
Following the spike in its AUM, Grayscale has revealed that a big chunk of the growth is coming due to investors from the institutional sector. The majority of the investments are being experienced are in hedge funds.
The announcement around achieving the $30 billion AUM milestone was made by Grayscale on Friday, February 11, 2021. In the announcement, Grayscale confirmed to the entire cryptocurrency community that the firm’s net AUM is $30.4 billion.
The firm revealed that as always, the trust that has the lead in AUM in Grayscale is the Bitcoin Trust (GBTC). It is currently sitting at an all-time high of $24 billion AUM and the figure is expected to rise soon. The second cryptocurrency trust in line is the Ethereum (ETH), which is far behind Bitcoin Trust but it is still sitting at $5 billion in Assets Under Management (AUM).
It was just the beginning of the year 2020 when Grayscale had started its trust with a net AUM of $2 billion. However, towards the end of the year 2020, Grayscale reported that it had managed to achieve a total AUM of $20 billion. The firm reported that it had experienced a 900% increase with respect to its AUM.
The firm stated that in the year 2020, the firm started observing a huge influx from mainstream institutions. Many financial institutions had started investing heavily in cryptocurrencies due to the surge in overall prices for digital assets.
Over the course of time, several financial institutions such as MassMutual, Rothschild Investment Corporation, and many more have jumped into the cryptocurrency pool.
Following the huge amount of adoption, the CEO of Grayscale Michael Sonnenshein also talked about the current growth. Sonnenshein stated that with time, the cryptocurrency industry has matured so much that it is no longer an unstable asset.
With time, the cryptocurrency industry has become less volatile and as adoption grows, the industry will continue to grow bigger and safe for investments.
As of now, Grayscale is involved in offering investors nine different types of cryptocurrency trusts. The names of the Grayscale trust include Bitcoin, Ethereum, Ethereum Classic, Stellar Lumens, Litecoin, Horizen, Zcash, Bitcoin Cash, and digital large-cap fund.