Grayscale AUM drops 19% as Bitcoin price falters

Bitcoin’s price history after November is a major concern for both investors and institutions. In fact, the crypto king’s price action is also having an impact on Grayscale’s digital asset portfolio. Follow To update As of Jan. 1, Grayscale Investments currently has $ 43.6 billion in assets under management (AUM) for its various crypto services.

December 2021

According to the platform’s last tweet, Grayscale’s digital asset portfolio is down about 19% from its AUM of $ 53.9 billion in early December.

Notably, that drop is even bigger than November’s AUM of $ 60.9 billion. Even so, the Digital Currency Group to explain is one of the largest cryptocurrency managers in the world.

The source: Grayscale

The decline in the AUM was mainly due to the stagnant price movement of Bitcoin and other major cryptocurrencies. Bitcoin has only had a return of 62.6% over the past 12 months, with monthly ROI down over 17% in the last month and -7% in the last week. For the past 24 hours, CoinGecko has traded between $ 46,756 and $ 48,145 under $ 50,000. Additionally, Bitcoin’s dominance is still below 40% at the time of writing, which improves the outlook for altcoins.

Compared to last year

Founded in September 2013, Grayscale Bitcoin Trust is the group’s longest-running and largest fund, with a return of 31,278.57% since inception. GBTC had reported assets under management of $ 30.4 billion as of December 31. Right after that, Grayscale Ethereum Trust ranks $ 11.6 billion. Despite the collapse in asset management stocks during the current bear market, Grayscale managed to post massive growth over the past year. Looking at the December 2020 numbers, the current figure is $ 43 billion versus $ 13 billion in assets under management on December 14, 2020.

The source: Grayscale

As such, GBTC and ETHE grew from fund sizes of $ 10.82 billion and $ 1.72 billion, respectively, over the same period.

It should also be noted that report Due to the interest of the organization ResearchAndMarkets.com, the organization GBTC and Grayscale Ethereum Trust declared popular crypto funds through which investors invest in BTC and ETH.

“It’s an important measure of institutional interest and trust in Bitcoin and other cryptocurrencies.”

Metaverse

According to the latest figures, Grayscale also holds $ 61.3 million in the Decentraland Trust, which enables an exposure to Metaverse. The process began in February 2021 amid increased interest in the area.

In one post On the company blog, Research Director David Grider noted:

“It is estimated that virtual world sales could increase from ~ $ 180 billion in 2021 to ~ $ 400 billion in 2025.”

In addition, the constant shift from game developers to monetization is a major driver of this growth trend.

Other funds

Going forward, we should also note that Grayscale’s Digital Large Cap Fund contains $ 510.6 million. On the flip side, there is $ 11 million in his DeFi fund. The DeFi Fund has returned 5.2% since inception.

Notably, in a December study, Grayscale found that digital assets were still a fraction of the size of other markets in relative terms.

Money and markets of the world | The source: Grayscale

Gold attorney Peter Schiff even offered Give advice:

“If you are bullish on Bitcoin today, buy GBTC instead. It’s hard to imagine a big win for Bitcoin as the current discount from GBTC to NAV isn’t shrinking. “

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