A digital asset management firm, Grayscale’s crypto AUM crossed the mark of $58 billion on Monday. The total value of Grayscale’s Bitcoin assets under management surpassed $40 billion yesterday.
Bitcoin and Ethereum have increased substantially in 2021. In fact, Bitcoin has jumped by more than 100% this year while Ethereum has spiked 400%. Both crypto assets have contributed a lot towards the latest surge in the valuation of Grayscale’s crypto AUM.
Moreover, BTC and ETH account for more than 90% of the overall value of Grayscale’s crypto assets. Though, the company started 2021 with almost $20 billion in digital AUM. While Grayscale accelerated its accumulation of Ethereum this year, the company added other digital assets like Chainlink (LINK) and Filecoin (FIL) to expand its investment products.
Apart from BTC, ETH, LINK and FIL, Grayscale has Ethereum Classic, Litecoin and Bitcoin Cash investment trusts. Back in March 2021, Grayscale expanded its portfolio with Basic Attention Token (BAT), Chainlink (LINK), Decentraland (MANA), Filecoin (FIL) and Livepeer (LPT) investment trusts.
Crypto Correction
On Tuesday, the crypto market saw a massive correction and lost nearly $300 billion of its market cap. BTC, ETH, SOL, ADA, DOT, DOGE, SHIB, XRP and several other digital currencies have dipped by more than 10% today. Commenting on the latest crypto market drop, Mikkel Morch, Executive Director & Risk Management at digital assets hedge fund ARK36, said: “Yet again, Bitcoin has done what it does best, defy expectations. After hitting an all-time high near the 69K level last week, the overall investor expectation was that the trend would immediately continue. Instead, we saw a largely sideways trend culminating in an almost 8% drop yesterday.”
“Such a price decrease may seem disappointing or even concerning given the sweeping wave of enthusiasm the markets experienced just last week. However, it is vital to remember that an 8% drawdown is considered a normal market move in the crypto markets,” Morch added in the comments.
