Grayscale’s AUM surpasses US$50 billion

Asset manager Grayscale has just surpassed $50 billion in cryptocurrency assets under management (AUM) yesterday. Grayscale’s AUM has become closer to the assets of SPDR Gold Trust GLD, the largest commodity ETF, and they have plans to convert GBTC into an ETF when policy makers approve. According to the data from Bitcoin Treasuries, Grayscale Bitcoin Trust holds 654,885 BTC, around US$41 billion in value.

Early in 2016, Grayscale filed with the SEC for an application of the Bitcoin ETF but soon withdrew the application because of the unfavorable regulatory situation at that time . But now, with several firms submitting Bitcoin ETF applications to the SEC, in addition to the nomination of Gary Gensler to become the chairman of the SEC, Grayscale told the community that they were 100% committed to converting GBTC into an ETF. Besides, Michael Sonnenshein, Ceo of Grayscale, believed that the market capitalization of GBTC could surpass SPDR Gold Trust GLD a few months later.

Over time, people used to link crypto with illegal activities together. However, based on the data from Chainanalysis referenced by Michael Morrel in “An Analysis of Bitcoin’s Use in Illicit Finance”, illicit activity among all cryptocurrencies in total cryptocurrency activity from 2017 to 2020 was less than 1%, indicating that there are still misunderstandings on bitcoin and cryptocurrencies.

Furthermore, Time Magazine has partnered up with Grayscale to produce educational videos of cryptocurrencies, in order to promote the crypto industry and transfer correct information to the public. Once the community is no longer misled, along with the approval of the Bitcoin ETF in the future, it could expand the entire crypto ecosystem and increase the confidence of investors towards cryptocurrency.

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