Crypto Asset Manager Grayscale Set Record with $600 Million in Investments in 2019

UTC by Bhushan Akolkar · 2 min read
Crypto Asset Manager Grayscale Set Record with $600 Million in Investments in 2019
Photo: Grayscale Investments / LinkedIn

Grayscale has a record-breaking Q4 2019 while garnering $225 million in a single quarter. Grayscale says that 71% of its investments came from institutional players who are now showing interest in the company’s other crypto-based products.

The last year of 2019 proved magical for the venture capital firm and crypto-asset manager Grayscale Investments. Recently, the company released its “2019 Digital Asset Investment Report” registering a record-breaking $600 million investment in a single year.

The record-breaking yearly performance was the result of a record-breaking Q4 2019. In the last quarter of 2019, Grayscale garnered $225 million in different investment products, clearly hinting at a larger market trend.

Besides, the report clearly states that 71 percent of the investments came from institutional investors. The interesting fact is that the 2019 inflow of investments surpassed the total amount invested from 2013 through 2018. Furthermore, the 2019 performance has pushed the total investments to above $1.17 billion. Speaking to CoinTelegraph, Grayscale Investments Managing director Michael Sonnenshein, said:

“We saw record-breaking investment into Grayscale’s family of products, illustrating continued demand from investors for digital currency access products and with a majority of investment coming from institutions, it’s clear that we’re experiencing institutional adoption.”

Grayscale Investments Saw Surge in Investors Base

Along with higher capital infusion, Grayscale simultaneously saw its client-base growing by 25%. These new clients contributed $146 million of the total investments raised.

Also, the reports mention that Grayscale clients are increasingly showing interest in more products. Like for e.g., 36% of the Grayscale clients have put their funds in multiple products offered by the company.

However, of all its products, the Grayscale Bitcoin Trust was having the highest demand with $193.8 million raised in Q4, and $471 million throughout the year. Marissa Arnold, communications director at Grayscale Investments said:

“As the largest digital currency asset manager, we feel that our numbers are indicative of broader market sentiment and institutional flows into digital currency.”

While speaking about the broader crypto markets, Arnold further added:

“The asset class is experiencing increased validation from legacy companies like Fidelity and CME, signaling to institutions and the investment community as a whole that crypto as an asset class is here to stay.”

It is clear that Bitcoin-based products continue to garner more trust among investors. The institutional players have been largely focusing on Bitcoin-related investment products available in the market.

The good thing is global financial giants are now making more efforts to provide stable investment solutions to investors. Recently, U.S.-based Fidelity Digital Assets joined hands with Europe’s Nickel Asset Management to provide custodial solutions to European investors.

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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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