Crypto Giant Grayscale Details Major Altcoins Held by Institutional Investors in Early 2022

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The world’s largest digital asset manager offers insight into the crypto assets that institutional investors are most interested in.

Grayscale just detailed a full breakdown of its crypto assets under management (AUM), which stands at over $ 40 billion.

The vast majority of Grayscale’s holdings are in the Bitcoin (BTC) Trust, which is worth $ 30.37 billion.

The leading smart contract platform Ethereum (ETH) ranks second with $ 11.49 billion in assets under management.

The company also offers trusts for a dozen altcoins, with holding amounts as follows:

Ethereum Classic (ETC): $ 418.1 million. Litecoin (LTC): $ 229.8 million. Bitcoin Cash (BCH): $ 136.6 million. Décentraland (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 holds an additional $ 508.3 million in its Digital Large Cap fund, as well as $ 10.6 million in the DeFi fund.

The company recently released a 27-page report on the future of decentralized finance (DeFi) and its impacts on the crypto and traditional finance sectors.

The report states,

“Crypto is creating a user-owned internet and DeFi allows those users to own a part of that 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 broadened access to information, and DeFi has the power to do the same with banking. DeFi seeks to transform the way people build trust on the internet and provide 33 million underbanked US households, 1.7 billion underbanked adults globally, and 4.6 billion internet users with new banking alternative.

With DeFi accounting for less than 2% of the global financial services industry’s $ 8 trillion, Grayscale believes these are still “first rounds” for the nascent ecosystem.

The report highlights how cryptocurrencies are filling a void created by the high fees and low interest rates consumers face with traditional banking services.

When it comes to potential risks, Grayscale cites government regulation, vulnerability to hackers, and the overall volatility of crypto as potential slowdowns.

“DeFi’s regulatory environment is still very uncertain, and it remains to be seen how [the] US or other regulators will adopt a policy affecting the ecosystem.

DeFi protocols were hacked or encountered bugs that resulted in loss of user funds or smart contracts not performing as expected due to coding errors.

Negative fluctuations in the value of a DeFi protocol’s crypto holdings can significantly harm DApps [decentralized applications] use, revenue from fees, usefulness of governance and, ultimately, token value.

You can read the full Grayscale DeFi report here.

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Featured Image: Shutterstock / Tithi Luadthong / Natalia Siiatovskaia

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