The cryptocurrency market has attracted the interest of many investors and could see another wave of large-scale adoption unfold. However, this could be due not only to cryptocurrency price volatility, but also the impending decision of regulators on various crypto products, including exchange-traded funds. [ETFs]. The increasing number of entries within the space has been a telltale sign that people are turning to cryptocurrencies to protect financial risks.
According to the CoinShare Digital Asset Funds Flows Weekly Report, nearly 40% of last week’s inflows to digital asset investment products were allocated to altcoin tracking instruments. Whereas, $ 97.8 million was invested in crypto investment products between August 30 and September 3. Of these entries, $ 38.9 million was invested in altcoin products.
Meanwhile, the report estimated that institutional asset managers currently accounted for a combined total AUM of $ 62.5 billion, close to the record level seen in mid-May of $ 66 billion. Grayscale has been dominating the space, accounting for 73% of the industry AUM.
The growth of its product list with different altcoins seemed to align with the company’s expansion plans before the US SEC approves the first ETF. Grayscale Investments is also the world’s largest digital asset manager with nearly $ 50 billion in AUM. However, since the asset manager awaits approval from the U.S. Securities and Exchange Commission [SEC], is recently Announced three of its single-asset products have become SEC reporting companies. These included grayscale Bitcoin Cash Trust [BCHG]Classic, Grayscale Ethereum Trust [ETCG]and grayscale Litecoin Trust [LTCN].
These Assets Join the Grayscale Bitcoin League [GBTC], Ethereum [ETHE]and Large Cap Digital Fund [GDLC] trusts that report to regulators, with periodic financial statements and declarations, and comply with all other requirements stipulated in the SEC ACT of 1934. That is, the six offerings will now be regulated to companies that are publicly traded on national exchanges such as Nasdaq or New York Stock Exchange.
This was the result of growing investor interest not only in Bitcoin, but also in other crypto assets, as highlighted in the CoinShare report. According to Michaell Sonnenshein, CEO of Grayscale, the SEC’s reporting firms have “opened Grayscale to a broader audience of investors who are often used to seeing that [type of reporting] when they think of making investments “.
With interest among institutions increasing by the day, asset management companies like Grayscale can take the opportunity to save this interest with a greater variety of crypto products.
This is a machine translation of our English version.