Grayscale Saw Bitcoin Demand Absolutely Rocket

There’s no doubt the crypto industry has shrunk since the March 12th “Black Thursday” crash, with industry firms laying off employees, Bitcoin traders throwing in the towel, and the market capitalization of the space shrinking.

But recently released data from a leading cryptocurrency fund suggests that demand for Bitcoin and other digital assets remains high.

Grayscale Sees Biggest Quarter Yet For Its Crypto Funds

According to the Q1 2020 investment report from Grayscale Investments, the crypto-fund arm of Digital Currency Group, the firm saw its biggest quarter ever, easily eclipsing the December 2017 highs and approximately doubling last month’s inflows.

The firm brought in a $503.7 million in the last quarter, with most of the capital allocated in Grayscale’s two flagship funds: the Bitcoin Trust and the Ethereum Trust, which trade on public over-the-counter markets under GBTC and ETH, respectively.

It’s important to note that a good portion of the inflows took place during the January and February rally. However, even after the “Black Thursday” crash, the fund saw double-digit million weeks, showing that there remains demand.

What’s especially interesting about this statistic is the makeup of investors that bought the product.

Although it isn’t exactly clear how Grayscale gets its data, the fund signaled that 88% of the $500 million in inflows came from institutional accounts, with multi-strat hedge funds, global market funds, and other categories of funds showing interest in crypto.

To be fair, it is relatively hard for retail investors to access Grayscale’s trust products due to capital restrictions and the platforms the assets are…

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