Bitcoin frenzy drives 900% surge in assets for crypto investment firm Grayscale

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

Dado Ruvic/Reuters Crypto investment firm Grayscale enjoyed a 900% surge in assets under management last year as bitcoin's rally drove multibillion-dollar inflows.The firm's assets ballooned to $20.2 billion from $2 billion in 2020, according to a Thursday report. Grayscale's Bitcoin Trust drove most of the inflows, growing to $17.5 billion AUM from $1.8 billion.Institutional investors' warming to bitcoin also aided the firm. Such funds counted for 86% of flows into Grayscale products in 2020, as well as 93% of all fourth-quarter inflows.The firm's rapid expansion came as bitcoin spiked higher through the end of last year. Wider adoption and new interest from institutional investors led the token to surpass its 2017 peak in December and double over the next 22 days.Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Crypto investment firm Grayscale saw assets under management surge tenfold in 2020 as wider adoption of bitcoin drove billions into its trusts. The firm's assets leaped to $20.2 billion from $2 billion last year, according to a quarterly report published Thursday.

Grayscale's Bitcoin Trust garnered the bulk of the inflows, surging to $17.5 billion from $1.8 billion in assets under management as the popular cryptocurrency's price rocketed higher. On average, the more...