- Grayscale seeks to increase its assets under management with the asset manager taking a key interest in DeFi focused crypto-assets according to the latest update.
- According to CoinShares’ data, Grayscale holds 75% of the total $44.3 billion worth of assets in institutional crypto investment products.
On 17th May, Grayscale revealed a list of new crypto assets that the asset management firm is considering adding to its trusts. Of the 13 crypto assets outlined, a majority are focused on decentralized finance (DeFi), a market whose demand has in recent months skyrocketed. Some of these include 1inch, Bancor, Polygon, Kyber Network and Ren.
Although it is a major step for these assets to be placed under consideration by the firm, it is no guarantee that they will be added to the trust. Grayscale is clear that not every asset under consideration will be turned into products. In the past, this was the case for Cardano, Tezos and Eos. After being listed for consideration, the firm later dismissed the crypto assets.
We’re always exploring new assets that can help us grow our family of investment products. Here are 13 additional we'll explore: $1INCH $BNT $CRV $ICP $KAVA $KNC $LRC $NEAR $MATIC $REN $SOL $UMA $ZRX. Follow along to get updates as we expand this list! https://t.co/5BU92rVZOM
— Grayscale (@Grayscale) June 17, 2021
The 13 crypto assets highlight accelerated demand for new products with the company only having added 5 new trusts on March 17th. These are, Filecoin, Chainlink, Basic Attention Token, Livepeer and Decentraland.
The addition of new crypto assets exposes the tokens to new investors, these are primarily institutional investor. This, in turn, pushes demand and prices as a consequence. A number of the assets listed above are witnessing unparalleled growth this year. Polygon for instance has seen its total value locked (TVL) surpass $10 billion.
As of June 15th, Polygon's TVL has exceeded $10billion, and it is currently $10.23billion, an increase of 57.9% in the past three days, AAVE accounting for 37.14%. Polygon's average daily trading volume is 614.2% of Ethereum. pic.twitter.com/wJFmp218vk
— Wu Blockchain (@WuBlockchain) June 15, 2021
The project has also on occasion surpassed both Binance Smart Chain (BSC) and Ethereum in daily active wallets. As CNF reported, its native token MATIC has also seen significant growth in the last few months despite a back trend in the wider market.
Grayscale Bitcoin and Ethereum trusts dominate $34.4B AUM
Grayscale has seen unprecedented growth in recent years. According to their latest update, the asset management firm holds around $34.4 billion. CoinShares data reveals that this represents 75% of a total of $44.3 billion worth of assets managed in institutional crypto investment products. This year alone, the trusts have seen a cash inflow of more than $2 billion. The biggest trust is the Bitcoin trust with a 73 percent share.
The Etherum trust is the second-largest trust representing 22 percent of the total. All other trusts represent 5 percent of the total AUM.
The growth highlights increased demand for crypto assets from both institutional and retail investors. In a recent interview with CNBC, Grayscale CEO Michael Sonnenshein revealed that investors are confident in crypto. The CEO noted that this confidence stems from governments beginning to introduce clear regulatory guidelines around digital assets. The CEO further revealed that the current pullback offers investors a chance to accumulate before the next major move.