Grayscale’s crypto assets under management (AUM) have surpassed the $10 billion mark for the first time as the prices of Bitcoin, Ethereum and other leading cryptocurrencies continue to rally.
Grayscale is one of the largest institutional investors in the cryptocurrency space. The company is enjoying the recent market rally and revealed that it now has over $10 billion in crypto assets under management.
The fund’s manager tweeted “11/17/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products. Total AUM: $10.4 billion”. Grayscale reached the $10 billion mark by investing in a wide range of cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Zcash (ZEC), Horizen (ZEN), Litecoin (LTC) and Stellar Lumen (XLM).
Bitcoin leads the way in terms of performance, with the cryptocurrency already up by more than 70% in the current quarter. BTC is up by nearly 10% over the last 24 hours, with ETH (5.9%), LTC (2%), BCH (1.6%) and XRP (1.2%) all recording good gains over the past few hours.
Bitcoin is currently trading at $18,250 per coin and is looking to reach its previous all-time high of $20,000 in the coming days or weeks.
According to the company’s November report, Grayscale’s cryptocurrency assets grew from $7.6 billion on 30 October to $10.4 billion at present. The price increase of cryptocurrencies was the primary driver behind the company’s increasing crypto AUM. However, Grayscale has also benefitted from the inflows of investment.
Managing Director Michael Sonnenshein tweeted Friday that Grayscale raised $262.3 million last week. This was the largest capital raised in a week by the company since it started operating. Grayscale has steadily grown its cryptocurrency portfolio over the years.
Grayscale’s crypto assets are held across nine single-asset investment trusts and a diversified fund. Shares to these investment vehicles aren’t open to the public but are offered directly to accredited investors. However, Grayscale allows some of the shares to be publicly traded on the over-the-counter markets.
The company’s crypto-asset portfolio could surge higher in the coming weeks as industry experts and analysts believe that Bitcoin could set a new all-time high before the end of the year. Some believe that the market could see a slight correction before BTC reaches its previous all-time high of $19,783.