The total amount of assets under management (AUM) by Grayscale Investments continues to increase. So far now, the cryptocurrency asset management firm has recorded two record-breaking quarters this year. Now, there are $7,000,000,000 worth of crypto assets that are under the management of Grayscale Investments, according to its Chief Executive Officer (CEO) Barry Silbert.
A new milestone for Grayscale
Grayscale Investments has achieved a new milestone by reaching $7 billion in assets under management (AUM). The majority of this amount is held in Grayscale Bitcoin Trust (GBTC) which is by far the largest fund of the firm.
Since the beginning of this year, Grayscale has seen a significant increase in its investments. In the first quarter, the firm raised an amount of $500 million. It was the best-ever quarter for Grayscale at that time. However, investments grew even further in the second quarter in which the asset management firm saw $905.8 million in new investments. The Q3 2020 was the record-breaking quarter for Grayscale as the firm raised over $1 billion in this quarter.
After witnessing impressive growth in the first three quarters, Grayscale’s total amount of assets under management has now reached the staggering $7 billion figure. This shows that institutional investors are continuously pouring their investments into cryptocurrency.
Though Grayscale Bitcoin Trust saw 77 percent of the total investments in the third quarter, Grayscale Ethereum Trust and others have also witnessed a significant increase in institutional investments over the course of the past two quarters. For instance, Grayscale’s Ethereum Trust now holds over 2 percent of the entire circulating supply of ETH.
Effect of Institutional investments on Bitcoin
Over the recent few months, the institutional interest in the top-ranked digital currency spiked high as a large number of new institutional investors stepped into Bitcoin. Moreover, various major firms have also thrown their investments into bitcoin during recent time including MicroStrategy and Square, etc.
This continued inflow of institutional investments along with the news of PayPal’s support for cryptocurrency trading has together affected the leading digital currency in a positive way. Because of this, the price value of Bitcoin was able to record its new high of this year as it reclaimed the $13,000 figure.