The world’s largest digital asset manager Grayscale has revealed the current status of their crypto assets under management. First and foremost, the total crypto assets are noticeable down from the latest report on November. What is interesting however, is that they also offered a look into what they are holding. Even though A majority of their holdings are in Bitcoin trust, they also revealed some new additions to their altcoin assets. Stay with us as we look into what the institutional investors are buying these days.
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Crypto Assets Down
As of January 2022, Grayscale holds $43.6 billion in crypto assets under management (AUM). At this point, there is more than 28% decline in assets compared to November 2021. Bitcoin Trust, which is the firm’s largest holding in crypto assets is down 30% form $43 billion to almost $30 billion. Furthermore, Ethereum Trust is also down 22% from $15 billion to $11.6 billion.
This decline is primarily due to a bear market in the recent months. With a broader perspective, we can see a total of 170% increase in crypto assets in a one-year time span. This is due to the growing interest in DeFi and cryptocurrencies.
However, the report indicates a wider variety of crypto assets are now available in Grayscale holdings.
More Altcoins
Although a majority of Grayscale’s holdings are in Bitcoin ($30B) and Ethereum ($11.50B), more altcoins are now offered by the firm. Here are the twelve altcoins and their holding amount:
- Ethereum Classic (ETC): $418.1 million.
- Litecoin (LTC): $229.8 million.
- Bitcoin Cash (BCH): $136.6 million.
- Decentraland (MANA): $60.6 million.
- Zcash (ZEC): $51.1 million.
- Horizen (ZEN): $38.6 million.
- Livepeer (LPT): $25.2 million
- Stellar Lumens (XLM): $20.6 million.
- Solana (SOL): $9.6 million.
- Basic Attention Token (BAT): $7.2 million.
- Chainlink (LINK): $6.2 million.
- Filecoin (FIL): $3.4 million.
The firm has been expressing interest in DeFi and its possible impact on the future of cryptocurrencies and traditional finance. They recently released a report on Decentralized Finance deliberating on its properties and outlook.
“Crypto creates an internet owned by its users and DeFi empowers those users to own a piece of that financial ecosystem. DeFi is the third wave of crypto cloud economy growth and the next wave of fintech [financial technology] innovation.
The Internet expanded access to information and DeFi has the power to do the same for banking. DeFi seeks to transform the way people establish trust on the internet and provide 33 million U.S. underbanked households, 1.7 billion underbanked adults globally, and 4.6 billion internet users a new banking alternative.”
At this point, despite the decline in crypto assets, we can clearly see how the diversification of these assets signals a growing interest in DeFi and crypto. 2022 will be the year when the regulations will eventually cover some of the blind spots. One primary reason for this limbo-like state of the market is regulatory uncertainties. Hopefully, 2022 will settle all the dust and clear the path ahead for future investors.
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