Grayscale’s Bitcoin fund attracts $32B, ETH investments soar past $12.1B
New York-based crypto-fund manager, Grayscale today revealed Assets Under Management (AUM) for its cryptocurrency-related products is now $46.8 billion. The Grayscale family of products attracted nearly $5.5 billion over the last three weeks.
The impressive data comes amid a remarkable bull run for cryptocurrencies that have seen Bitcoin eclipse $52,000 this week. A massive bitcoin price pump has been fueled by the industry celebrating El Salvador’s official adoption of the benchmark cryptocurrency as legal tender effective tomorrow.
The sudden recovery has helped Grayscale grow from $41.6 billion in assets under management in mid-August to more than $46 billion as of September 6.
Investments into the company’s flagship product, Grayscale Bitcoin Trust (GBTC) ballooned to $32.4 billion, up from $30.8 billion on August 31. In addition, following the solid performance in early September, Grayscale® Ethereum Trust saw a record $12.1 billion.
Besides institutional investors, which accounted for 90 percent of the total investment in the third quarter, Grayscale said accredited individuals, retirement accounts and family offices increased their involvement.
Grayscale’s other products have also outperformed, with Bitcoin Cash, Litecoin, and Digital Large Cap products combined have exceeded $1.5 billion of inflows over the last month.
According to Grayscale, the figures show strong and sustained evidence that institutional investors, dominated by asset managers, are increasing their digital asset exposure despite a historically tumultuous market.
The company’s publicly-traded funds offer institutional investors the opportunity to trade crypto on the stock market, with most of the funds poured into the Grayscale Bitcoin Trust.
Grayscale Investments, a unit of Barry Silbert’s Digital Currency Group, announced earlier this year a major shift in its executive leadership. The company’s longtime Managing Director, Michael Sonnenshein has been handed the job of leading the world’s biggest crypto-fund manager.
The former Barclays analyst assumed the post of Chief Executive as Grayscale Founder, Barry Silbert stepped down to focus on his other initiatives including OTC crypto trader, Genesis Trading and cryptocurrency news site, CoinDesk.