Grayscale Registers Over $1 Billion Investment Inflow in Its Crypto Products during Q3 2020

UTC by Bhushan Akolkar · 3 min read
Grayscale Registers Over $1 Billion Investment Inflow in Its Crypto Products during Q3 2020
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During the Q3 2020, Grayscale raked-in over $1 billion worth of investments in its crypto products. The total inflow in Grayscale products so far in 2020 has surpassed its cumulative inflow of six years between 2013-2019.

Grayscale Investments, the world’s largest digital asset manager has reported its best quarterly earnings so far in Q3 2020. The Grayscale company registered a massive $1.05 billion of total investment across all its crypto products.

With an inflow of nearly $720 million in Q3 2020, the Grayscale Bitcoin Trust the most popular crypto product by the company. The Bitcoin Trust’s assets under management (AUM) have also jumped a whopping 147%. This makes it the fastest-growing investment product in the crypto space.

Just in the last week of September 2020, Grayscale acquired an additional 17,000 BTC. This got the company’s total holdings to 45,000 BTC with a net market value of $4.7 billion.

Apart from the Bitcoin Trust, the demand for other Grayscale products has also jumped significantly by 31% during Q3 2020. This includes Grayscale Litecoin Trust, Grayscale Bitcoin Cash Trust, and the Grayscale Digital Large Cap Fund. All of these products have seen inflows growing by 1400% QoQ. The official press release by Grayscale states:

“During the third quarter of 2020, Grayscale raised $1.05 billion into its investment products, marking the largest capital inflow in a single quarter in the firm’s history. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019”.

Grayscale: Rising Institutional Money Rain in Crypto Market

In its report, Grayscale notes that institutional investors continue to dominate new investments in the crypto space. A whopping 81% of the total investments in Grayscale’s crypto products came from institutional players.

With the global economic uncertainty all around, institutional exposure to cryptocurrency is rising slowly. Business intelligence firm MicroStrategy has moved a $425 million of its liquid cash funds in Bitcoin. Over the last six months, MicroStrategy has bought over 37,000 Bitcoins over the period of time.

Recently, the Jack-Dorsey-backed Square App also purchased $50 million worth of Bitcoins accounting for 1% of its total portfolio. Fidelity Digital Assets recently published a new report seeking of Bitcoin investments. The report talks about Bitcoin as an alternative asset in a multi-asset portfolio. The report mentions that one can consider allocating 5% of their multi-asset portfolio to Bitcoins.

Besides, the Fidelity report also claims that retail investors are getting more familiar with Bitcoin and slowly turning their attention to crypto. The report also mentions that social media platforms have played a key role in driving retail adoption of Bitcoin.

“As this new wave of retail investors familiarize themselves with these channels, some of their attention will undoubtedly flow to Bitcoin and other digital assets,” the report states.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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