Grayscale Investments has announced that its net crypto assets under management (AUM) have surpassed the $30 billion milestone, now standing at $30.4 billion. The company attributes this explosive growth primarily to institutional investors, particularly hedge funds, which have poured capital into its products. CEO Michael Sonnenshein stated: “There’s no longer professional risk in investing in the digital currency asset class — there’s probably more career risk in not paying attention to it.”
Bitcoin and Ethereum Trusts Lead the Surge
According to data released by Grayscale on February 6, 2021, the Grayscale Bitcoin Trust (GBTC) holds over $24 billion in AUM, making it the largest single product. The Grayscale Ethereum Trust (ETHE) follows with more than $5 billion. The firm started 2020 with just $2 billion in AUM and ended the year at over $20 billion, representing a staggering 900% increase over the year.
Institutional Dominance and Growing Commitments
In its Q4 2020 report, Grayscale explicitly declared that “Institutions are here.” During the fourth quarter, institutional investors accounted for 93% of total inflows, amounting to approximately $3 billion. The average institutional commitment also rose significantly, from $2.9 million in Q3 2020 to $6.8 million in Q4. Grayscale now offers nine distinct cryptocurrency investment products, having discontinued its XRP Trust. The full lineup includes: Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Trust, Horizen Trust, Litecoin Trust, Stellar Lumens Trust, Zcash Trust, and the Digital Large Cap Fund. Of these, only the Horizen Trust, Stellar Lumens Trust, and Zcash Trust are not yet publicly traded on OTC markets. Shares of the remaining products are unrestricted and can be purchased through any brokerage account.