Institutional Demand Pushes Grayscale’s AUM to $13 Billion

It’s no doubt that there is currently a strong and growing interest in Bitcoin (BTC) and other digital currencies from institutional investors. This is evident as institutional-grade digital assets investment companies, especially Grayscale Investment, are seeing an exponential kind of demand for crypto products. 

Earlier today, the largest crypto investment company disclosed on Twitter that its assets under management had surpassed another milestone valuation of US$13 billion.

Grayscale AUM Hits ATH

The company offers about ten investment products tied to popular digital currencies such as Bitcoin, Ether (ETH), Ripple (XRP), Litecoin (LTC), and others. Overall, the Grayscale Bitcoin Trust product accounts for about 83 percent of the entire AUM, with a total valuation of US$10.8 billion. For a long time, institutional investors had shown more interest in holding the BTC product on Grayscale. But, not only Bitcoin.

The second-largest crypto also gained more than US$1.7 billion from institutions on Grayscale. For the context, the Bitcoin and Ether products account for more than 95 percent of the company’s net asset under management. Litecoin is one other cryptocurrency that made a significant increase. The LTC product surged from US$48.9 million on November 13 to US$74.8 million, per the report today.

The Institutions are Coming

Aside from Grayscale, the increasing flow of funds from institutional investors to Bitcoin can also be seen in BTC derivatives trading platforms like the Chicago Merchantile Exchange (CME) and Bakkt. These platforms recently witnessed high stats in Bitcoin futures open interest and volume. JPMorgan Chase, a leading financial services company in the United States, expect US$600 billion from institutions to flow into Bitcoin in the coming years.

The prediction was stirred after reports informed that a US mutual insurance company, MassMutual, invested about US$100 million in Bitcoin. The banks believe that more insurance companies and pension funds are going to follow suit.