Grayscale Investments, the largest cryptocurrency wealth manager in the world, now manages more crypto than the largest gold fund in the world manages gold. Grayscale reported on Twitter yesterday that the company is now investing more than $60 billion for the first time assests under management (AUM) has:
Grayscale’s assets under management has topped $60 billion https://t.co/HvMnrpAFgd
— Barry Silbert (@BarrySilbert) November 10, 2021
By comparison, the world’s largest gold fund, SPDR Gold Shares (GLD), currently manages some $58.1 billion. That is followed by iShares Gold Trust (IAU) at $28.9 billion and VanEck Vectors Gold Miners ETF (GDX) at $13.6 billion.
There is, however, a caveat to be made here. Yesterday, many prices briefly broke, but later in the day they made a significant correction downwards. That would mean that Grayscale’s AUM may now be slightly below GLD’s again.
This also only applies to all crypto funds from Grayscale together. If you only do it bitcoin (BTC) fund from Grayscale, the Grayscale Bitcoin Trust (GBTC), the total came to $43.557 billion yesterday. This amount has dropped to $42 billion today.
Discussion has been going on for some time now about which asset should better serve as a so-called inflation hedge or safe haven; gold or bitcoin? Opinions remain divided, but we see more and more investors trading their gold for bitcoin. JPMorgan, the largest bank in the US, recently reported this.
Grayscale has been responding to this for some time and aggressively campaigned this year with the slogan “drop gold.” The crypto fund manager also wants to turn his bitcoin fund into a listed fund, i.e. a exchange-traded fund (ETF). It would then be a spot ETF that the company recently applied for. That was when the first futures ETF was approved by the US SEC. Grayscale thinks the product may launch as early as this summer.
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