Grayscale Investments manages over $ 25 billion in assets, 13 times more than in the first quarter of 2020
Grayscale Investments on Tuesday reported that as of January 12, the volume of assets under management (AUM) exceeded $ 25 billion. In addition, the company again opened access to its products for new investors. Earlier, the editorial staff of BeInCrypto reported that the company closed access to six trusts.
Another Rubicon for Grayscale
The company has crossed an important milestone amid growing interest in cryptocurrency markets. Despite the correction at the beginning of the week, bitcoin and most of the other coins from the top hundred are in the green zone relative to the levels of the beginning of the year. Grayscale Investments has been accumulating BTC since the May halving and at the current rate of $ 33,000, it is generating impressive income.
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In January 2020 alone, the volume of assets managed by Grayscale grew by $ 10 billion. The company’s assets consist mainly of bitcoin and ether ($ 21 billion and $ 3.1 billion, respectively). Recall that in December, the company acquired over 17 thousand bitcoins in one day. The growth potential has not yet been exhausted. In particular, altcoins have already begun to recover from the drawdown.
By comparison, Grayscale only had $ 2.2 billion in circulation in the first quarter of 2020. In less than a year, this amount has grown by about 13 times to current values. Of course, the market will still experience more than one correction, but the essence remains the same. Grayscale knows how to generate profits for its investors.
The company’s assets will rise in price due to the strong fundamental base of BTC and ETH, including the growth of network activity. The positive dynamics will attract more professional investors. According to the Bitwise Survey, many are already eyeing the market or actively investing in digital currencies.
Institutional interest continues unabated
If in 2017 the market was driven by retail investors, then this rally is fueled by institutional money. While many companies assess the attractiveness of Bitcoin, they still have doubts about volatility and uncertain regulatory frameworks.
Geoff Currie of Goldman Sachs’ believes that the cryptocurrency market is moving to a new stage of development, becoming more mature. Other analysts share his point of view, pointing to the possibility of a sixfold rise in the price of bitcoin by the end of 2021.
These include strategists at JPMorgan Chase, who predicted the first cryptocurrency will rise in price to $ 146,000, and the head of Binance US Catherine Cowley, who believes that Bitcoin will settle in the $ 75,000 to $ 100,000 range.
Institutional investment will play an important role in increasing demand for the first cryptocurrency. This year, regulators will clarify their position on stablecoins and other coins, which will also move the market up the evolutionary ladder.