Grayscale Reveals Record 1Q20 Institutional Crypto Investments

Grayscale Investments – the world’s largest digital asset’s investment fund released new data for Q1 2020, which shows that amidst the economic slowdown, institutional interest and their exposure to the cryptocurrencies has increased considerably. The total investment into Grayscale products for Q1 2020 was $503.7M, which is the largest quarterly raise in the fund’s history (the previous high was $254.8M in Q3 2019). Grayscale Bitcoin Trust experienced record quarterly inflow of $388.9M, while Grayscale Ethereum Trust managed $110M, the remaining $4.8M was distributed amongst the rest of the Grayscale crypto products. The Grayscale Investments now holds about 1.7% of the Bitcoin’s circulating supply and the assets under its management (AUM) represent 1.2% of the total digital assets market capitalization.

It is worth noting that majority of the crypto investments (88%) came from institutional investors, dominated by hedge funds and the new investors brought in $160.1M. The nature of these hedge funds is broadly mixed. The total crypto investments in all of Grayscale products, since the fund started in 2013, have now reached $1.68B. A large number of investors (38%) are also diversifying across different digital asset products in the Grayscale family (the same diversification percentage was 29% in 1Q19).

Last Year Grayscale Crypto Investments

Grayscale – the crypto investment fund had a record last year too. The data reveals that inflows into the fund, over the last 12 months, reached a staggering $1.07B with the majority of the investments (79%) coming from institutional investors, again dominated by hedge funds.

What Does The Grayscale Crypto Investments Data Reveal?

The Grayscale crypto investment’s data indicates that investors (primarily institutional) are increasing their holdings in the digital asset class,…

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