Just as the cryptocurrency market recovers, the largest digital currency investment company, Grayscale Investment, saw a significant increase in its assets under management (AUM). Within three days, Grayscale gained over US$3 billion in assets.
The Bitcoin (BTC) and Ethereum (ETH) Trust products account for the largest share of the entire AUM. However, some people are worried GBTC and GETH premiums are trading well below the market price of the underlying assets.
Grayscale Reports a Total of over $44 Billion in AUM
Grayscale has reported a total of US$44.1 billion in assets under management as of 29 March 2021. The company supports about 13 crypto investment products, five of which were added on 17 March, including Chainlink (LINK) and Basic Attention Token (BAT). The GBTC product accounts for about US$37.3 billion, followed by GETH, which represents about US$5.58 billion of the total AUM.
Three days ago, the investment company reported a US$41 billion AUM. The $3 billion increase could be partially attributed to the recent increase in the market value of Bitcoin and other cryptocurrencies. Last week, BTC was trading mainly around US$55,000. However, since the start of the week, the cryptocurrency showed stronger price momentum, and it could cross US$59,100 soon.
The Issue With Grayscale Premium
Many users have shown much concern about the negative Grayscale Premiums. Since February, the company’s share price for GBTC has been dropping lower than the underlying cryptocurrency itself. According to data from OTCNode, GBTC is trading at a premium of -10 percent compared to the current price of Bitcoin. GETH premium is also negative (-8.66 percent).
Grayscale might consider buying back the shares to curtail the declining premiums, as previously announced.
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