Most analysts predict that Bitcoin and Ethereum, Grayscale’s largest trusts, could reach $100K per BTC and $10K per ETH.
The largest digital asset manager Grayscale has reached a new milestone. According to recent data, the asset manager has reached $30 billion in Assets Under Management (AUM). Of this, Grayscale Bitcoin (BTC) and Ethereum (ETH) Trusts take the lion’s share, accounting for over 95%.
Grayscale’s holding has grown tenfold over the last year. In February 2020, the firm was only holding around $3 billion in cryptocurrency. Owing to new institutional interest in digital products, now the holding is bigger than ever and showing no sign of slowing. With their two largest holding setting new ATHs this year, the potential down the line is immense.
The Grayscale Bitcoin Trust (GBTC) in particular has been accumulating heavily in the last few weeks adding around 42,223 BTC in the last month. The total Bitcoin held by Grayscale according to bybt data stands at 649 BTC. For the Ethereum Trust, whose accumulation had been halted in Nov 2020, since the restart this year to a total of a little over 3M ETH- worth $4 billion.
In an Ethereum report aimed to help clients understand the network released by the firm, it’s clear why Grayscale was keen to get investors back into ETH and why in recent days, it has aggressively been accumulated. In the report it notes:
“Between the enormous amount of activity on Ethereum, the economic improvements to Ether, and the promise of increased scalability with ETH 2.0, there is a lot for the Ethereum community to be excited about. We can observe from the data that the price of Ether tends to move with underlying activity on the network…”
As institutional investment continues to grow, prices will continue to accelerate. Most analysts predict that Bitcoin and Ethereum, Grayscale’s largest trusts, could reach $100K per BTC and $10K per ETH. This price growth would further see other asset managers consider Bitcoin allocation leading to further price explosion.
Litecoin (LTC) Third Largest Trust after Grayscale BTC and ETH Trusts
Bitcoin and Ethereum are likely to continue being the most sought digital currency right now. Grayscale however has not been shy in exploring and introducing its investors to other cryptocurrencies.
02/04/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $30.1 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/EJusspgOnK
— Grayscale (@Grayscale) February 4, 2021
Other notable cryptocurrencies in its management include Bitcoin Cash (BCH), Ethereum Classic (ETC), Stellar Lumens (XLM) Litecoin (LTC), Zcash (ZEC), and Litecoin (LTC). Of this, the biggest load is Litecoin with a value of a little over $196M. Bitcoin Cash is second with its value being $114M. The least total holding is Stellar Lumens, valued at $18M.
As Ross Stevens shared in the Microstrategy World 2021 Conference, the growth in the Bitcoin Trust has primarily been pushed by demand from institutional investors. The New York Digital Investment Group founder further adding that his partners had bought more Bitcoin in 2020 than in 2013-2019. He also predicted that he expects the same trend to continue over the next two years.
