The world’s largest digital asset manager offers a look at which crypto assets institutional investors are most interested in.
Grayscale has just detailed a full breakdown of its Crypto Assets Under Management (AUM), which stands at a staggering $ 40 billion.
The vast majority of Grayscale’s holdings are in the Bitcoin (BTC) Trust, which is worth $ 30.37 billion.
Leading smart contract platform Ethereum (ETH) ranks second at $ 11.49 billion in AUM.
The company also offers trusts for a dozen altcoins with the following holding amounts:
- Ethereum classic (ETC): $ 418.1 million.
- Litecoin (LTC): $ 229.8 million.
- Bitcoin Cash (BCH): $ 136.6 million.
- Decentraland (MANA): $ 60.6 million.
- Zcash (ZEC): $ 51.1 million.
- Horizen (ZEN): $ 38.6 million.
- Livepeer (LPT): $ 25.2 million
- Stellar Lumens (XLM): $ 20.6 million.
- Solana (SOL): $ 9.6 million.
- Basic Attention Token (BAT): $ 7.2 million.
- Chainlink (LINK): $ 6.2 million.
- Filecoin (FIL): $ 3.4 million.
Grayscale has an additional $ 508.3 million in its Digital Large Cap Fund and $ 10.6 million in its portfolio DeFiFund.
The company recently released a 27-page report on the future of decentralized finance (DeFi) and its impact on the crypto and traditional finance industries.
The report says
“Crypto is creating an internet that belongs to its users, and DeFi enables those users to own part of this financial ecosystem. DeFi is the third wave of growth in the crypto cloud economy and the next wave of fintech [financial technology] Innovation.
The Internet has expanded access to information, and DeFi has the power to do the same for banking. DeFi seeks to transform the way people build trust on the Internet by offering a new banking alternative to 33 million US households with inadequate bank accounts, 1.7 billion adults with inadequate bank accounts and 4.6 billion internet users. “
With DeFi accounting for less than 2% of the world’s $ 8 trillion financial services industry, Grayscale believes these are still “early innings” for the emerging ecosystem.
The report highlights how Cryptocurrencies fill a void created by the high fees and low interest rates consumers face in traditional banking.
When it comes to potential risks, Grayscale cites government regulations, vulnerability to hackers, and general cryptovolatility as potential speed limits.
“DeFi’s regulatory environment is still very uncertain and it remains to be seen how [the] US or other regulators will issue policies that affect the ecosystem.
DeFi logs were hacked or there were bugs resulting in loss of user funds or smart contracts that did not work as intended due to coding errors.
Negative fluctuations in the value of the crypto holdings of a DeFi-Log can cause considerable damage to the DApps [decentralized applications] Usage, fee income, governance benefits and ultimately token value. “
You can read the entire Grayscale DeFi report here.
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Source: Crypto News Deutsch