How Grayscale’s cryptocurrency portfolio grew $25B in one year

Grayscale now controls more than $28 billion worth of cryptocurrency, a taint-flexing 1,000% boost in one year.

Grayscale — the world’s largest digital asset manager — held just $2.5 billion in crypto in January 2020. 

In 2021, Grayscale’s altcoins alone are worth almost twice that. Based on its asset update earlier this week, the fund is sitting on around 2.95 million ETH ($4 billion) overall.

But that’s nothing compared to Grayscale’s Bitcoin portfolio. Protos calculated it manages over 657,400 BTC ($22.6 billion) — or 3.5% of BTC’s circulating supply — up from about 268,000 BTC a year ago.

That means Grayscale added roughly 389,000 BTC ($13.4 billion) in the past year, more than any of its chosen cryptocurrencies.

But after comparing the raw dollar values of Grayscale’s crypto today to a year ago, it’s clear the fund (and its clients) have built big positions in popular altcoins Ethereum, Litecoin, and Stellar Lumens.

In January 2020, Grayscale kept a little more than 18,500 LTC, which was worth $1 million at the time. As of earlier today, we estimated Grayscale was holding over 1.2 million LTC ($189 million).

So, albeit smaller, the dollar value of Grayscale’s Litecoin portfolio grew 17,600% in one year, while its Bitcoin holdings jumped 900%. The fund’s Ethereum and Stellar Lumens stashes respectively swelled by 4,500% and 4,100%.

Grayscale’s Ethereum Classic trust grew the least. It managed 9.2 million ETC ($80 million back then) this time last year, now it has 13.4 million ETC ($101.5 million) — representing a lowly 27% value boost in one year.

[Read more: SEC vs. Ripple Labs — Is XRP a security?]

ETC is however Grayscale’s worst performing asset, down 13% in the past year as the rest of its cryptocurrencies are up over 50%.

In the end, the only crypto stash Grayscale didn’t add to was Ripple’s XRP. We found Grayscale held 20.6 million XRP in January 2020 — then worth $4.8 million.

Today Grayscale holds none, having cited difficulties in exchanging XRP for fiat after the SEC sued Ripple and two of its execs for failing to register it with US securities regulators.