A bearish correction in the cryptocurrency market has reduced the volume of assets managed by Grayscale by 8% in a few days.
The AUM of cryptocurrency investment firm Grayscale fell to $ 38.7 billion as of Feb.24.
Meanwhile, back on February 22, the company boastedthat the AUM indicator updated the record at an altitude of $ 42 billion.Thus, in less than a week, the amount of funds in management decreased by almost 8%, or by $ 3.3 billion.
Grayscale under attack
The value of Grayscale’s largest trust, the Grayscale Bitcoin Trust, fell from $ 35.2 billion to $ 32.5 billion, nearly 8%. Grayscale Ethereum Trust declined from $ 5.58 billion to $ 5.14 billion; losses amounted to about $ 440 million. But the worst is the situation in the Ethereum Classic Trust. The investment per share of the trust fell by almost 20%, and the market value of the share fell by more than 25%.
Bloody monday
Grayscale’s current losses reflect the dynamics of the cryptocurrency market in recent days. According to Bybt, more than 645 thousand cryptocurrency positions worth $ 5.64 billion were liquidated in the market since February 22-23. This day has already been dubbed “Bloody Monday.”
BTC accounted for about $ 2.41 billion in liquidations; another $ 1.35 billion on Ethereum (ETH), and almost $ 200 million each on Litecoin (LTC) and Ripple (XRP). Other crypto assets such as Binance Coin Coin (BNB), Bitcoin Cash (BCH), EOS, Polkadot (DOT) and Cardano (ADA) lost a total of $ 663 million.
Temporary difficulties
Despite the losses, Grayscale is unlikely to stop. Lately, the fund has been aggressively buying up almost any crypto asset it can reach. Since the beginning of the year, the company has applied to register several new trusts.
In January, Grayscale bought 150% more bitcoins than miners mined. On February 4 alone, the company bought 12,684 ETH, with the amount of funds under management exceeding $ 30 billion for the first time. In addition, the company applied for trust registrations for Aave and Polkadot in January, and for Yearn and SushiSwap in February.
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