Grayscale’s Asset Under Management Clocks Over $30 Billion, Bitcoin Trust (GBTC) Contribution Drops

Published February 5, 2021 | Updated February 5, 2021

Grayscale

Grayscale’s Asset Under Management Clocks Over $30 Billion, Bitcoin Trust (GBTC) Contribution Drops

World’s largest digital asset manager Grayscale has updated that the company’s net assets under management for all its crypto trust products have just moved above $30.1 billion. The Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum (ETHE) are the two biggest products contributing over 95% of the company’s total crypto holdings.

Over the last year, Grayscale has registered over 900% in net assets under management moving from under $3 billion in February 2020 to now above $30 billion. Thanks to massive institutional interest in Bitcoin and cryptocurrencies driven by uncertain global economic conditions. The Grayscale Bitcoin Trust (GBTC) has certainly been the dominating product to attract fresh institutional money.

In January 2021, Grayscale added more than $40000 Bitcoins to its holdings during the BTC price correction. The Grayscale Bitcoin Trust (GBTC) holds ~650K Bitcoin with $24.3 billion in net assets under management. However, the percentage contribution of GBTC to Grayscale’s total crypto holdings has dropped with the recent surge in altcoins.

From 85% of Grayscale’s total AUM at the beginning of 2021, GBTC now contributes 81% to the total AUM. Moreover, since March 2017, the GBTC premium has also dropped to its lowest.

Grayscale Altcoin Products Pick Up, Ethereum Trust (ETHE) Scoops More ETH

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No doubt GBTC still has an overwhelming weight on Grayscale’s total assets, however, the recent Ethereum surge and altcoin mania has seen investments coming to Grayscale’s altcoin product offerings. The Grayscale Etherem Trust (ETHE) has recently resumed operations again accepting fresh investments from accredited investors.

Since then, Grayscale Ethereum Trust (ETHE) has added ~85,000 ETH Coins over the last few days. After adding nearly 40,000 ETH on Wednesday, Grayscale adds another 12,600 ETH coins in the last 24-hours as the ETH price moves around its all-time highs.

As per data on Bybt.com, the Grayscale Ethereum Trust (ETHE) now holds 3.02 million ETH worth a massive $4.95 billion. Apart from Grayscale other digital asset managers are projecting good growth this year.

Speaking at MicroStrategy World 2021 Conference, Ross Stevens, founder and chairman of the New York Digital Investment Group (NYDIG), said the company could expand its Bitcoin holdings significantly by the end of 2021. Currently, with 6 billion in AUM, Stevens expects this to surge 4x to $25 billion by end of 2021. In his conversation with Michael Saylor, Stevens said:

“I believe that the most important decision that CEOs will make in the next ten years will be deciding to allocate to bitcoin. My partners bought more bitcoin in 2020 than in 2013-2019 combined. As our fiat businesses continue to inflate and accelerate, I expect we will buy more bitcoin in the next two years. We are capital allocators. If we didn’t believe we would make money off this, we wouldn’t invest a penny.”

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bhushan Akolkar 624 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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