Grayscale one of the leading digital asset management firms informed that their assets under management reached $9.8 billion. This leaves the company just $200 million away from their $10 billion mark. The company is allowing traditional investors to gain exposure to a wide range of virtual currencies.
Grayscale’s Assets Under Management Continue Growing
Grayscale’s assets under management continue expanding as more investors want to buy Bitcoin and other cryptocurrencies. Institutional investors didn’t have the opportunity to get access to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and other digital assets. However, with Grayscale’s solutions, it is now possible to do so.
The company is not only offering BTC, ETH and LTC but also XRP, Bitcoin Cash (BCH), Stellar (XLM), Horizon (ZEN), Zcash (ZEC) and Ethereum Classic (ETC). This shows they are offering a wide range of virtual currencies to investors. The main difference with other companies is that they are a regulated and compliant firm handling digital assets.
The largest Grayscale’s products include Grayscale Bitcoin Trust with $8.23 billion in assets under management and the Grayscale Ethereum Trust with $1.2 billion in assets under management.
During the last quarter, investors placed a total of $1.05 billion worth of investments into cryptocurrencies. It is worth mentioning that Bitcoin has been growing in recent months. The largest cryptocurrency surpassed $16,000 and the entire crypto community is expecting it to surpass $20,000 its all-time high registered in December 2017.
The company wrote on its quarterly report:
“Grayscale’s assets under management reached all-time highs during 3Q20, a broad reflection of investment interest in the digital currency asset class. YTD, Grayscale’s AUM increased from $2.0 billion to $5.9 billion, a rise of approximately 195%.”
It is worth taking into consideration that large companies are also interested in acquiring Bitcoin. Square and MicroStrategy have purchased large amounts of BTC so as to gain exposure to the market. These two firms are not planning to sell their assets but to hold them for the long term.
Traditional investors never had the possibility to trade virtual currencies or gain exposure to them. The market has been built around retail investors. This is why large and traditional investors didn’t have the opportunity to get access to the market. Nowadays, Grayscale and other firms are offering clients with a large selection of solutions to invest in virtual currencies.