Grayscale reports best quarter with over billion-dollar inflows

  • 14 October 2020, Wednesday, 11:06

Cryptocurrency asset manager Grayscale Investments published its third-quarter investment report, according to which the firm has raised $1.05 billion into its investment products, marking this their largest capital inflow in a single quarter ever.

Dropping our latest Digital Asset Investment Report this morning…@Grayscale raised over $1 billion into our family of products in 3Q20!!

a HUGE congrats to the team on this incredible achievement as we continue to drive awareness and adoption of digital currency investing!

— Michael Sonnenshein (@Sonnenshein) October 14, 2020

Altogether, the firm stated that the Grayscale suite of products now adds up to $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019. According to the report, funds continued to come from institutional investors, accounting for 81% of investment in the third quarter of 2020.

In addition, total investment into Grayscale products stands at $1.05 billion which overtook the second quarter’s $905.8 million worth of investments. Grayscale stated that offshore investors were responsible for 57% of the sum and that a majority of investment (84%) came from institutional investors, dominated by hedge funds.

With regard to other Grayscale entities, such as its BTC and LTC trusts, 80 percent of investments came from institutional investors, also dominated by hedge. It is important to note the firm’s Bitcoin Trust’s Assets Under Management (AUM) was Grayscale’s fastest-growing investment products. The average weekly investment in Grayscale Bitcoin Trust was $39.5 million, and the Trust experienced $719.3 million in 3Q20 inflows, or 1,500 percent increase. It’s AUM surged 147 percent YTD.

However, Grayscale Litecoin Trust performed the best in this quarter, showcasing a 1,800 percent increase in inflows on a quarter-over-quarter basis.

Demand for other Grayscale products such as its Bitcoin Cash Trust, Digital Large Cap grew significantly in the third quarter as well with inflows increasing by more than 1400% quarter-over-quarter. The average weekly Investment in Grayscale’s Ethereum Trust was $9.0 million.

Recently, Grayscale Ethereum Trust had been registered as a Securities and Exchange Commission (SEC) reporting company.