The largest digital asset manager, Grayscale revealed that its net asset under management (AUM) has surpassed $50 billion. This was announced by the company via Twitter in the late hours of April 14. The company has now become the first asset manager to reach the milestone of $50 billion AUM.
— Grayscale (@Grayscale) April 14, 2021
The company’s asset under management now equals that of the second-largest commodity ETF. Grayscale had earlier revealed its plans to convert its Bitcoin Trust to an ETF once the SEC approves one in the US. When that happens, the company will be the second-largest commodity ETF after SPDR Gold Shares.
Grayscale now has approx. 660,000 BTC worth roughly above $41 billion in its custody. The value increase of the AUM is due to Bitcoin’s price rally yesterday when it hit an ATH above $64,500. Of the 660,000 Bitcoin, 655,000 is held in the Grayscale Bitcoin Trust Fund (GBTC).
The latest surge in the crypto market has led to a boom season for most crypto-related services. Many crypto companies have recorded staggering first-quarter earnings. However, amidst the boom, US Congressman Kevin McCarthy has called on regulators not to ignore the growth of Bitcoin.
Users Raise Concerns Over Grayscale Fees and Discount
Other than Bitcoin, the company also holds large amounts of Ethereum with nearly $7.4 billion ETH under management. Ethereum also made record highs on April 14 as the price soared above $2,480. The asset manager also has its AUM spread across Litecoin, Bitcoin Cash, Ethereum Classic, Decentraland’s MANA, Filecoin, Zcash, Basic Attention Token, Livepeer.
Following the news of the $50 billion AUM, some Twitter users expressed their discontent with grayscale’s 2% fee. Others suggested that the firm should fix the GBTC that has been trading at a discount for some time.
Amid the growing institutional adoption, the company announced that it has partnered with TIME Magazine to launch a video series on cryptocurrency. The series, which will be launched this summer, is poised to explore the crypto space.