a plebiscite for Grayscale, which eclipses gold?

Grayscale continues to accumulate cryptocurrency for its clients

The news was noted in one of Grayscale’s usual updates, which details the nature of its funds under management. These currently exceed $ 60 billion, a record for the company.

By far the most represented asset is the Grayscale Bitcoin Trust. It brings together $ 43.5 billion, or 72% of the company’s funds under management. It is followed by the Ethereum trust, which brings together $ 14.8 billion.

The other Grayscale trusts follow very far behind. In third position, we find its fund dedicated to large caps, which brings together several assets ($ 715 million). Among funds based on a single cryptocurrency, Ethereum Classic (ETC) dominates with $ 756 million, then Litecoin (LTC), with $ 433 million.

Grayscale funds under management AUM

Source: Grayscale

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A plebiscite for cryptocurrency funds against gold?

Grayscale’s funds under management now overtake the largest gold-based fund, the SPDR Gold Shares, which replicates the performance of the yellow metal. The comparison is timely, on the one hand because cryptocurrencies are increasingly seen as a safe haven, like gold.

On the other hand, because Grayscale has made the gold / crypto opposition its hobbyhorse. The giant encourages institutional investors to “drop the gold” thanks to a marketing campaign initiated last year.

A global trend

Moreover, the trend is not only observable at Grayscale. A JPMorgan report released last month indicated that institutional investors appeared to be turning away from gold in favor of Bitcoin. He explained:

” [Les institutionnels] seem to be returning to Bitcoin, as they perhaps see it as a better hedge against inflation than gold. “

In addition, billionaire Paul Tudor Jones recently explained that he shared this opinion:

“[Le BTC]has my preference over gold at the moment. […] There is clearly a space for crypto. She is clearly winning the race against gold right now. “

In any case, Grayscale will not contradict him. The firm intends to consolidate its position in the coming months, in particular by transforming its Bitcoin trust into an ETF.

👉 To read – Morgan Stanley doubles its exposure to Bitcoin (BTC) via the Grayscale trust

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About the author: Marine Debelloir


Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.

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