Institutional Rain: Grayscale Attracts Over $1 Billion In Fresh Crypto Investments in Q3

By Bhushan Akolkar
October 14, 2020 Updated October 14, 2020
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The world’s largest digital currency asset manager Grayscale released its Digital Asset Investment report for Q3 2020. Reportedly, the giant invested a whopping $1.05 billion into different crypto investment products during the third quarter.

The Grayscale Bitcoin Trust remained the most in demand attracting over 70% of the total investments i.e. $719.3 million. The assets under management for the Grayscale’s Bitcoin Trust has surged more than 147% year-to-date. This makes it one of the fastest-growing investment products in the market.

The total investments across all Grayscale’s crypto products have crossed $2.4 billion year-to-date. This is more than double the total investment that Grayscale registered between 2013-2019.

The asset managed said that demand for its investment products saw a steep rise during the third quarter. Apart from the Bitcoin Trust, other alternative crypto investment products also registered significant growth. The announcement reads:

Among alternative products, the most notable increase in appetite has emerged for Grayscale® Bitcoin Cash Trust, Grayscale® Litecoin Trust, and Grayscale® Digital Large Cap Fund. On average, the aforementioned products saw inflows increase by more than 1,400% quarter-over-quarter.

The institutional money rain in the crypto market continues. A whopping 81% of the total investments received by Grayscale during Q3 2020 is from institutional players. The asset manager said that investors continue to broaden their exposure to digital assets.

Bitcoin (BTC) Remains the Top Choice from Institutional Players

The uncertainty in the global economy led by the Coronavirus pandemic has pushed big institutions to consider Bitcoin as a potential hedge. Some of the big names have poured massive sums of money in Bitcoin over the last few months.

Business Intelligence firm MicroStrategy alone poured $425 million of its idle cash in Bitcoin. Jack Dorsey’s Square App purchased $50 million worth of BTC last week. Stone Ridge subsidiary NYDIG purchased over $100 million worth of Bitcoin recently, and the list continues.

This massive institutional inrush is certainly a vote of confidence for Bitcoin investors. Analysts expect that more institutions will join over the coming months.

At press time, Bitcoin (BTC) is trading at a price of $11,529 with a market cap of $213 billion. JP Morgan analysts said that Bitcoin can face some “short headwinds” in the medium term. Over the last week, BTC has gained nearly 10% and eyeing its next journey above $12,000.

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.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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