Crypto investment firm Grayscale sees 900% jump in assets to $20 billion amid bitcoin frenzy

SourceCNBC
SectorFinancial Markets
CountryMiddle east

Mykola Tys/ | LightRocket | Getty ImagesGrayscale saw its assets under management skyrocket as Wall Street used it as a proxy to invest in bitcoin.The New York-based investment firm kicked off last year with $2 billion in assets and ended with more than $20.2 billion. That 900% increase was driven by demand from institutional investors such as hedge funds, endowments and pension funds, the company said in a quarterly report Thursday.Grayscale's Bitcoin Trust became a popular, publicly traded way for investors to get exposure to cryptocurrency without owning the coins themselves. The investment product ballooned from $1.8 billion to $17.5 billion in assets year over year."We saw a meaningful acceleration of institutional participation," Michael Sonnenshein, who recently took over as CEO of Grayscale Investments, told CNBC in a phone interview. "There's no longer professional risk of investing in the digital currency asset class — there's probably more career risk in not paying attention to it."Grayscale's banner year came as high-profile money managers publicly warmed up to digital currency.Billionaire hedge fund manager Paul Tudor Jones called bitcoin the "best inflation hedge" and compared it to putting money behind tech giants like Apple and Google.

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