Key Takeaways
- • Michael Sonnenshein, newly appointed CEO of Grayscale Investments, told Bloomberg that institutional interest in crypto is broadening beyond hedge funds to pensions and endowments as of January 2021.
- • Sonnenshein said the size of institutional allocations to Grayscale's crypto products is "growing rapidly."
- • Grayscale reported $27.5 billion in assets under management, according to a company tweet on Thursday, January 7, 2021.
- • Grayscale cut the management fee on its Digital Large Cap Fund from 3.0% to 2.5%.
- • Sonnenshein succeeded Barry Silbert as CEO, having served as the firm's managing director for three years.
Summary
Michael Sonnenshein, who took over as chief executive of digital asset manager Grayscale Investments from Barry Silbert on Thursday, said institutional participation in cryptocurrency is broadening. Speaking to Bloomberg, Sonnenshein said the firm had long seen participation from hedge funds but had recently begun to see interest from other institutions, including pensions and endowments. "The sizes of allocations they are making are growing rapidly as well," he said. Sonnenshein had been Grayscale's managing director for three years before becoming CEO.
Grayscale offers a range of cryptocurrency trusts that give investors exposure to the asset class without requiring them to hold the underlying coins directly. According to a Thursday tweet cited by CoinDesk, the firm now manages $27.5 billion in assets. On the same day, Grayscale announced it had reduced the management fee on its Digital Large Cap Fund from 3.0% to 2.5%.
The New York-based firm is SEC-regulated and is owned by Digital Currency Group, the parent company of CoinDesk. Coverage from CoinDesk and related reporting noted that Grayscale planned to add new funds and roughly double its staff during 2021.
Grayscale offers a range of cryptocurrency trusts that give investors exposure to the asset class without requiring them to hold the underlying coins directly. According to a Thursday tweet cited by CoinDesk, the firm now manages $27.5 billion in assets. On the same day, Grayscale announced it had reduced the management fee on its Digital Large Cap Fund from 3.0% to 2.5%.
The New York-based firm is SEC-regulated and is owned by Digital Currency Group, the parent company of CoinDesk. Coverage from CoinDesk and related reporting noted that Grayscale planned to add new funds and roughly double its staff during 2021.
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