Grayscale Investments’ crypto AUM value saw a fall from $60.9 billion to $43.6 billion in a time frame of almost two months.
Grayscale, a leading firm specialising in digital currency investments, has evaluated its crypto assets at $43.6 billion as of January 1. The firm notified its current crypto assets under management (AUM) value via a tweet made at 3:00 AM. In November 2021, the digital asset manager evaluated its AUM at a whopping $60.9 billion. The drop of over $17 billion is mainly attributed to the decline in the firm’s Bitcoin and Ethereum assets. The Bitcoin and Ethereum cryptocurrencies form a major portion of Grayscale’s AUM.
Grayscale noted a 30% dip in its Bitcoin trust whose value plunged from $43.5 billion to $30.4 billion. Grayscale’s Ethereum trust, the firm’s second-largest crypto asset, meanwhile fell by 22% in value. It plummeted from approximately $15 billion to $11.6 billion.
The recent drops in the price values of cryptocurrencies in the past few weeks is one of the reasons behind the dips in Grayscale’s AMU values.
Not all is Bad for Grayscale Investments
Although the crypto asset management firm saw declines in its crypto holdings, it did notice a significant increase in its overall AMU. On December 24, 2020, Grayscale declared that its crypto AMU was at $16.4 billion. Hence, in just one year, Grayscale’s AMU increased by 170%.
In addition, the firm also widened its portfolio of cryptocurrencies. The new names include Chainlink’s LINK token, MANA, the virtual currency of Decentraland, the BAT token and Filecoin.
The firm had filed for the inclusion of new crypto trusts in Delaware in January 2021.
Grayscale Investments is a New-York based firm owned by Digital Currency Group, Coindesk’s parent company.