Grayscale Reaches $40 Billion in Assets Under Management

Investment manager Grayscale has reached a new milestone in its assets under management. 

According to a tweet published by the company on Wednesday, the firm now manages $40 billion worth of assets, $33.1 billion of which is allocated to the Grayscale Bitcoin Trust. The developments represent remarkable growth in Grayscale's holdings, as just about six months ago, the firm hit the $6 billion mark. Grayscale has therefore since recorded a 567% increase in it assets under management. Notably, Bitcoin's price has risen by around 420% during the same timeframe, which also affects Grayscale's numbers.

Grayscale Investments is capitalizing on new interest by institutions who wish to acquire exposure to Bitcoin in a simple and regulated way: a vast majority of the firm's investments come from institutional investors. In Q3, the percentage of capital inflow from investors such as hedge funds and family offices was 84 percent, making the growth in Grayscale's asset under management a proxy for the institutional interest in Bitcoin.

Grayscale's assets under management have been growing aggressively for some time. In December 2020, the company saw a record $500 million inflow in a single day—most of which into its Bitcoin trust—and in October last year, the firm also saw $300 million of inflow in under 24 hours. Before then, the company was growing at an astonishing, but less breathtakingly so, pace as it bought $720 million worth of Bitcoin in the third quarter of 2020.