Grayscale is finally starting to rip off the benefits of amassing crypto assets. As the world’s largest digital assets manager, the investments firm has recorded stellar gains in the second quarter of 2020, following increased institutional crypto adoption, and a friendly crypto regulatory atmosphere.
The main catalysts that saw Grayscale recently achieve an all-time high of $5.4 billion of assets under management (AUM) are arguably the ongoing Bull Run anticipation in the crypto market and the recent US banks’ greenlight to custody cryptocurrencies.
This has prompted a lot of institutional investors, traders, and new adopters to buy, sell, or invest long-term in various crypto assets. Grayscale stated that institutional investors accounted for 85% of its Epic rise in AUM, which occurred during the second half of July 2020.
Targeting $68 Trillion In Wealth Transfer To Young People
Grayscale launched in 2013 as a Bitcoin investment fund and has grown to offer other altcoins, including Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic. As the biggest Bitcoin Trust Fund manager, it’s estimated that by 2024, Grayscale could own 10% of the total BTC in circulation.
The exponential growth in 2020, and further potential of the cryptocurrency market especially in the middle of a global pandemic and financial crisis, has opened up vast opportunities for the firm.
Outspoken Founder and CEO of Grayscale’s parent company Digital Currency Group (DCG) Barry Silbert, recently stated as the biggest institutional crypto investor, the firm will likely have the upper hand while dealing with other entries into the market.
The firm has also hinted that it is eyeing $68 trillion in wealth transfer from older to younger generations that will happen in the next 20 years. As the biggest adopters of digital assets and most crypto savvy generation, young people, especially the millennial demographic are five times more likely to invest in digital currencies.
This has led Silbert to initiate a possible partnership with Robinhood, the most popular stocks and crypto trading app for young people. He said on Twitter:
“Anxiously waiting for @RobinhoodApp to allow their customers to invest in the @Grayscale family of crypto funds.”
Robinhood has a customer base of 13 million active users who invest in stocks and cryptocurrencies through its app. It’s popular with young people for offering free access to investment options by charging zero trading fees, trading information and an easy to use interface.
Robinhood’s crypto trading services are offered in partnership with other crypto exchanges. The App has been termed a revolutionary invention for a demographic that’s been massively excluded from the traditional market.
However, Robinhood also comes with its fair share of criticism. It has been accused of giving easy access to the stock market to a lot of young people who have no trading experience, this exposes them to extreme risk of loss of funds and accumulation of huge amounts of debt.
