Grayscale’s Assets Under Management (AUM) peaked at $ 25 billion on January 12.
The company’s assets under management have grown by approximately $ 23 billion in less than a year.
Institutional interest is growing, which could indicate greater growth in 2021.
Grayscale Investments has passed the $ 25 billion mark in assets under management. This is an almost 13-fold increase since the first quarter of 2020.
On January 12, digital asset management firm Grayscale Investments said in a tweet that it had reached $ 25 billion in assets under management (AUM). The company has also resumed offering its products to new investors, after suspending inflows last month.
Another key step for Grayscale
Grayscale has taken this new step as interest in the cryptocurrency market grows, despite the liquidation wave that took place on Monday, January 11. Bitcoin’s current price , at $ 33,000, is a significant return for Grayscale, which has been accumulating BTCs since the start of 2020 before the “ halving ”.
In January 2020 alone, Grayscale increased its assets under management by $ 10 billion. The company’s assets are mostly made up of Bitcoin and Ethereum, to the tune of $ 21 billion and $ 3.1 billion, respectively.
That said, there may still be room for near-term growth as altcoins are slowly recovering from the January 11 decline. The company bought over 12,000 BTC in a single day in December 2020 as the market continued to gain momentum.
By comparison, in the first quarter of 2020, Grayscale had only $ 2.2 billion in assets under management. In less than a year, it has grown by about 13 times its current figure. While the market is likely to experience some corrections, Grayscale nevertheless seems to have made very profitable investments.
Its assets could rise further, due to the fundamentals of BTC and ETH, which show strong network activity. This could then attract more professional investors. According to a recent Bitwise investigation , this may well be happening .
Institutional interest remains strong, with analysts predicting 6-digit prices
The influxes into the market this time have a distinct institutional flavor, as opposed to the 2017/2018 purchases, which were mostly done by retailers. These companies are mostly interested in Bitcoin due to volatility and regulatory concerns.
Jeff Curries of Goldman Sachs believes the market is maturing. According to him, this was expected from a nascent asset. Analysts seem to be thinking the same, with several predicting six-figure targets for Bitcoin in the year 2021.
One finds in particular JPMorgan Chase, who declared that a course at 146,000 dollars was possible but “not viable”. Binance US CEO Catherine Coley believes Bitcoin could reach a range of $ 75,000 to $ 100,000.
Institutional investments will play an important role in increasing demand for BTC. As the regulation of stablecoins becomes clearer and more is expected to arrive this year , will the market continue to register increasing gains?