Friday, December 3

Grayscale Fights for Asset Management Leadership with World’s Largest Gold ETF

Key facts:
  • Grayscale exceeded SPDR’s AUMs on November 10, when it reported $ 60.8 billion.

  • Grayscale’s bitcoin fund represents the bulk of the assets it manages.

The net assets under management of Grayscale, the world’s largest digital asset manager, are roughly matched by the world’s largest gold ETF. This is evidenced in the most recent update published on the company’s official Twitter account, where the management of USD 58.2 billion in bitcoin and other cryptocurrencies is reported.

Grayscale it’s found hunting of the place currently occupied by SPDR Gold Shares, an exchange-traded fund (ETF), which tracks the price of gold. On its official page, the ETF reports net assets under management, or as it is known, “assets under management” (AUM) for USD 58.3 billion.

This same week, specifically on Wednesday, November 10, Graysacle managed to briefly surpass SPDR, registering AUM for USD 60.8 billion. However, bitcoin and altcoins have had a couple of days of correction from prices, which influenced the decline in the value of assets managed by the company by USD 1.6 billion.

Grayscale’s managed bitcoin assets exceed $ 40 billion. Source: @Grayscale and Twitter

As seen in the report published by Grayscale, its bitcoin-based product, which it calls Grayscale Bitcoin Trust (GBTC), is the highest volume with USD 41.3 billion, followed by Ethereum-based (GETH) with $ 14.5 billion under management.

Grayscale, which has been operating as a cryptocurrency asset manager since 2013, recently applied to the Securities and Exchange Commission (SEC) to convert GBTC into an ETF. The company has tried since 2016 to obtain SEC clearance for a BTC exchange-traded fund, to no avail so far. The prospects for approval of an ETF that directly monitors the price of bitcoin, does not seem very favorable, since the SEC has just rejected the request of a CBOE and VanEck to commercialize such a product.

Earlier this week, Grayscale CEO Michael Sonnenshein weighed in at the event «Crypto Goes Mainstream» , hosted by Yahoo Finance this week, where he said the debate over the approval of a Bitcoin ETF “has become a political issue.”

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