- Grayscale assets valuation shrunk by almost $4 billion as cryptos dropped in price.
- This was mostly caused by Bitcoin’s drop to $30,000 within two days.
Since January 10, Bitcoin (BTC) especially and other major cryptocurrencies, have been bleeding in price through January 11. The global cryptocurrency market took a heavy hit as the price of Bitcoin dropped from over $40,000 to around $30,000. Other large-cap cryptocurrencies like Ether (ETH), Ripple (XRP), and Litecoin (LTC) also began a heavy correction not seen since the rally in December.
Consequently, the entire crypto market capitalization dropped below $1 trillion. The crypto derivatives market wasn’t even in good shape, either. Today, the largest crypto investment company, Grayscale Investment, posted its net asset under management (AUM), showing a massive drop in its entire cryptocurrency holdings.
Grayscale AUM drops to $24 billion
According to the update, Grayscale’s crypto holdings currently summed to $24.5 billion. This asset valuation is significantly dominated by its Bitcoin Trust or GBTC, worth about $20.6 billion. Other crypto products on the list include Ethereum ($3.1 billion), Bitcoin Cash ($119 million), Elhereum Classic ($101 million), Litecoin ($150 million), Ripple ($10 million), and others. The Grayscale Large Cap Fund valuation now sits around $303 million.
Although the record today could still be seen as a huge valuation, it’s, in fact, lower than the previous valuation reported on January 8. At the time, the investment company had a net AUM valuation of $28.4 billion. This represents about a $3.9 billion drop in Grayscale’s AUM when compared to the present record.
As earlier mentioned, Grayscale’s assets valuation is mostly dominated by the Bitcoin product. So, the massive drop in the company’s holdings was caused by Bitcoin’s two-day major correction. However, the cryptocurrency is gradually making a comeback to $40,000. At the time of writing, Bitcoin trades at $35,563 on Coinmarketcap. Additionally, the market capitalization of BTC has risen from $603 billion yesterday to $$661 billion.