Grayscale’s Assets Under Management Rise to $2.6 Billion After Federal Hearings About Libra
- The AUM of Grayscale Investments took a major hit two weeks ago but are starting to climb again.
- A report from Grayscale shows that the entry of JP Morgan and other institutions to be a “positive sign” for the market.
Grayscale Investments, the firm that started the #DropGold campaign, reported a major drop in their assets under management about two weeks ago. The drop took their total AUM from $3.0 billion to $2.5 billion in a matter of a week. However, a new update confirms that their AUM total has risen up to $2.6 billion now. Grayscale announced this progress via tweet.
7/19/19 UPDATE: Holdings per share, net assets under management and digital assets per share for our investment products.
— Grayscale (@GrayscaleInvest) July 19, 2019
The increase is presently being credited to the market recovery that Bitcoin experienced, following a major pullback that shed a bad light on the market after the Congressional and Senate Hearing on Libra. Yesterday, a 5.01% appreciation and a $400,000 AUM were posted by Grayscale Stellar Lumens Trust under Single Asset Products. This was followed by a rise of 4.59% increase by Grayscale Bitcoin Trust, as well as an AUM of $2.498 billion. Grayscale Litecoin Trust followed, rising by 3.59% with an approximately $700,000 AUM. Per-share, the digital assets remained at $8.80, $10.25, and $9.53, respectively.
The digital asset investment firm has seen an uptrend from this rebound, which they reported on in
“Digital Asset Investment Report.”
In the report, the second quarter of 2019 showed a total investment of $84.8 million into Grayscale Products. Institutional investors contributed 84% of the funds, which were dominated by hedge funds.
CEO Barry Silbert of Grayscale Investments was the subject of an interview recently, where he stated that the journey of Goldman Sachs and JP Morgan into the cryptocurrency industry is a “positive sign.” He added,
“This quarter, institutional investors comprised the highest percentage of total demand for Grayscale products (84%) since we began publishing this report in July 2018.”
In the same quarter, Grayscale AUM has reportedly tripled, and the average investment per week with all of the products considered is registered at $6.5 million. The report also said that this rally was based on “fresh investments.” Grayscale hasn’t seen a quarterly inflow this strong since Q2 of 2018 when it reached nearly $85 million in “in-kind” creation.
The report also showed the inflow of the Grayscale Ethereum Trust, which reached $14 million in the second quarter. The Grayscale Ethereum Classic Trust followed behind at $5.5 million. Over the same period, 24% of the inflow was amassed by Grayscale Products ex Bitcoin.
Presently, Bitcoin is trading at $10,928.96, increasing by 4.04% in the last 24 hours.