Grayscale AUM Hit to $20 Billion Threshold As Bitcoin Price Surge Abruptly

January 2, 2021 2:53 PM UTC

Grayscale’s total Assets Under Management (AUM) has surged exponentially to hit a new all-time high. Based on the report, the firm now claims $20 billion worth of cryptos under management, raised almost ten times since the start of 2020.

Barry Silbert, CEO of Grayscale, tweeted, “Here’s to another 10x in 2021! Happy new year everybody.” 

While the Grayscale Trust continues to gather an enormous amount of crypto, the report revealed that Grayscale’s Bitcoin trust holds $17.4 billion. Grayscale presents investors with a cost-effective means of getting crypto exposure without actually acquiring the asset. This strategy withdraws the challenges of buying, storing, and safekeeping digital assets directly.

According to crypto experts, the price rally of Bitcoin has supported the firm to hit the $20 billion milestone before the new year. Bitcoin’s price has smashed the $29,000 barrier, amid the growing interest of institutional players.

Grayscale didn’t Liquidate XRP and XLM

In the wake of the US Securities and Exchange Commission lawsuit against XRP’s creators, several crypto exchanges have suspended XRP deposit and withdrawal services. Apart from exchanges suspending, the news appears Grayscale drained more than $5.77 million worth of XRP tokens earlier this week.

Apparently, data from Bybt shows an inaccurate liquidation of XRP and Stellar Lumen (XLM) by the asset manager. The firm’s spokesperson confirmed that Grayscale didn’t dump extensive stakes of XRP and XLM. He said:

“None of the Grayscale investment products operate a redemption program. The net holdings of our investment products only change as a result of inflows from the private placement, price of the underlying assets, and accrued management fee.”

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