In brief:<\/p>\n
Digital asset manager Grayscale now boasts a total of $3.7 billion worth of Bitcoin, Ethereum, and several other cryptocurrencies under managementmarking an all-time high for the firm. These funds are held on behalf of its investors.<\/p>\n
This latest update represents a $500 million increase in Grayscale's total AUM since its Q1 report published March 31, 2020. In fact, in a little under a year, Grayscale added $1 billion (37%) to its total assets under management (AUM), with the firm reporting $2.7 billion AUM in July 2019.<\/p>\n
First arriving on the scene in 2013, with the Grayscale Bitcoin Trust, the asset manager has amassed a huge amount of cryptocurrency since. Heavily focused on Bitcoin to begin with, the firm eventually diversified into several additional large-cap cryptocurrencies.<\/p>\n
Yet Grayscale still retains the vast majority of today's holdings in its Grayscale Bitcoin Trust, which maintains $3.3 billion worth of Bitcointhe equivalent of 89.1% of total AUM.<\/p>\n
As reported by Decrypt, Grayscale, along with Square's bitcoin payments processor, CashApp, bought up an amount of Bitcoin equivalent to half of all newly minted Bitcoin in Q1 of 2020.<\/p>\n
A vast chunk of Grayscale's remaining allocated funds lies in the Grayscale Ethereum Trust, with the second-largest cryptocurrency claiming $279 million, or 7.5% of Grayscale's AUM.<\/p>\n
This institutional demand for ETH appears to be a growing trend. 2020 has been a particularly good year for the Ethereum Trust, with the firm boasting over $110 million in ETH inflows in the first quarter of 2020 alone. This is increasing at a much faster rate than the previous two years, which saw inflows at an average of $12 million per quarter.<\/p>\n
But will investors be in it for the long run or is this all just a bet on the halving?<\/p>\n
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