Grayscale, the global leader and the world’s largest digital currency asset manager, provides investors with diversified exposure to the digital currency asset class (including, of course, Bitcoin and other cryptocurrencies) and sponsors nine investment products. It is a New York-based, SEC-regulated company held by Digital Currency Group, the parent company of CoinDesk. While it’s always been fairly popular, it’s seen new levels of adoption as the crypto market bull run has continued into 2021.
In the fourth quarter of 2020, Grayscale raised $3.3 billion (₹ 24,157 crores) via its cryptocurrency investment vehicles, a record, and evidence of the rally’s institutional base.
In fact, the CEO of Grayscale, Michael Sonnenshein tweeted that the company raised more than $700 million (₹ 5124 crores) on January 15 alone, validating its increased momentum in the fourth quarter.
The firm’s most popular product, the Grayscale Bitcoin Trust led in the fourth quarter of 2020, raising an average of $217 million (almost ₹ 1590 crores) every week.
Grayscale started with Just $2 billion
The firm has started with $2 billion (₹ 14,645 crores), but according to the most recent data of the company, it indicates that Grayscale has a record $27.1 billion (₹ 1,98,446 crores) under management on January 15.
Through Twitter, Senior ETF analyst at Bloomberg, Eric Balchunas compared Grayscale as the “ARK” of cryptocurrencies, stating the similarities with increased interest and defying trends.
“The similarities are pretty amazing. I think both hung in relative oblivion for 3-4 yrs, had like $2b 12mo ago, and then boom, 10x increase. Both defy trends: ARK w stock picking and grayscale w very high fees and 20%+ premiums.”Eric Balchunas, Senior ETF Analyst, Bloomberg
ARK Investment Management is an asset management company founded by Catherine Wood. The firm has a flagship ARK Innovation ETF (ARKK) which has over the year returned more than 171%, witnessing the assets under management grow to $21.8 billion – a more than tenfold increase.