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Grayscale now owns almost 2 per cent of all Bitcoin in circulation

Crypto investment firm announces record $3.8bn in AUM


Grayscale investments, the largest crypto asset manager in the world, has announced that its assets under management (AUM) have swelled to an all-time high.

The firm’s managing director Michael Sonnenshein heralded the fact that, as of Tuesday, Grayscale’s AUM total $3.8bn (£3.1bn, €3.4bn).

The company’s three most popular investments are its Bitcoin (BTC) Trust, Ethereum (ETH) Trust and Ethereum Classic (ETC) Trust, worth $3.3bn, $289m and $73m respectively.

The crypto world’s mid-March plunge in the midst of the panicked Covid-19 market sell-off did not prove to be the disaster that some feared. Indeed, with central banks turning the money printers up to eleven in order to calm the markets, digital assets have become more popular, both with retail and institutional investors.

During this time of severe quantitative easing, the recent and successful Bitcoin halving further underlined one of the key attractions of cryptocurrencies, their limited supply and innate deflationary nature.

In Grayscale’s report for the first quarter of 2020 published last month, the firm revealed that it had managed to raise almost double its previous record for total investment.

Its  $503.7m inflows in the first three months of the year clearly indicate the changing attitudes of institutional investors towards the crypto scene.

Indeed, as the interventions of the likes of Paul Tudor Jones have shown, at a time of runaway currency inflation and increasing digitisation of means of exchange, some prominent financial figures have begun to come round.

Grayscale will obviously hope this trend continues and as its investors will also hope their trust pays off. Should Bitcoin experience the second major surge of its history, the firm will be well placed to benefit.

With around 346,000 BTC, it owns just under 2 per cent of all bitcoin in circulation. This percentage is expected to grow yet further, as Grayscale bought a third of all the Bitcoin mined in the last three months.

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