With bitcoin marching to new all-time highs and dragging most alternative coins higher as well, the assets under management for the leading crypto manager Grayscale jumped to nearly $14 billion. This is a 7-fold increase for the company whose managing director categorized 2020 as the “coming of age story for the asset class.”
As reported earlier today, the primary cryptocurrency went on a tear that resulted in reaching almost $24,000. With its decisive leg up, BTC smashed the previous all-time high of just shy $20,000.
However, breaking above that coveted $20,000 level didn’t come easy as BTC was rejected on several occasions. Nevertheless, Grayscale Investments’ managing director, Michael Sonnenshein, said that this development was “not a surprise” to the leading cryptocurrency management company.
Sonnenshein added that it’s only fitting to surge above this “symbolic threshold” at the end of a “historic year for bitcoin.”
“The sustained growth of bitcoin and other digital currencies this year is a reflection of this ‘coming of age’ story for the asset class, showing the long term staying power and growing investment interest from mainstream investors and institutions alike. Remember, these are just the early days, and we think there’s a lot more runway to go.”
The digital asset manager, oriented primarily towards institutional investors, has enjoyed impressive inflows in 2020. The company reported back-to-back record-breaking allocations of funds every quarter this year.
Grayscale entered the new century with about $2 billion in AUM. With the price developments and the massive inflows, that amount grew to $13.7 billion as of yesterday.
Sonnenshein acknowledged the impressive growth in a recent appearance on CNBC’s Squawk Box. He also said that the types of investors that have put their capital to work in bitcoin and other digital assets are “unlike any of the investors we have seen ever before.”
However, while he outlined that the inflows in Grayscale products are about 6-times more than the numbers from 2019, he said that it’s “just very difficult to put a price tag” on BTC for the next twelve months.