Latest reports show that institutional crypto giant Greyscale is expected to reach $ 10 billion in cryptocurrency holdings
At the time of writing, Grayscale has $ 9.8 billion in assets under management (AUM). At the current rate, that figure is expected to rise to $ 10 billion soon.
The company announced Twitter, “Net assets under management, shares per share and market price per share for our investment products. Total AUM: $ 9.8 billion.“
Barry Silbert, the founder of Digital Currency Group (the parent company of Grayscale), commented about the update saying, “$ 200 million to go”.
Grayscale’s investment line allows institutional investors to gain exposure to various cryptocurrencies in a manner compatible with regulations. The cryptocurrencies now on the Grayscale exchange are Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, Stellar, Horizon, Ripple and Zcash.
According to the company’s third quarter report, the sector has seen strong growth this year. Grayscale reported that in the third quarter alone, investors bought $ 1.05 billion in Grayscale Trusts. This is about $ 100 million more than the previous record of $ 906 million set in the second quarter.
“More institutions invested in 3Q20 than ever and increased their average allocation from $ 2.2 million in 3Q19 to $ 2.9 million in 3Q20. Institutions that are comfortable with several products within the Grayscale product package had, on average, almost double the commitments of investors for a single product during 3Q20.
The consistent and significant growth in demand for digital assets – shown through the lens of Grayscale’s asset growth – continues to support our view that digital assets are an emerging market that should not be ignored.“
The report added that, “As investors become more comfortable with digital assets, we see a greater appetite for Grayscale products. Grayscale’s Bitcoin Cash, Litecoin and Digital Large Cap products saw a 10-fold increase in quarter-on-quarter entries.“
Considering that the company has an average weekly investment of $ 80.5 million, it won’t be long before Grayscale exceeds the $ 10 billion mark.