Grayscale Posts Record-Breaking Quarter, Attracts Over $250 Million into its Investment Products

Digital Currency Group (DCG) subsidiary Grayscale Investments, the largest institutional holder of Bitcoin (BTC), has published its Digital Asset Investment Report for third quarter 2019. The firm’s report highlights its record-breaking quarter.

During Q3 2019, Grayscale attracted $254.9 million into its investment products, which is notably triple what was raised in Q2 of this year ($84.8 million).

The Grayscale Bitcoin Trust attracted the most capital with $171.7 million in inflows, which is reportedly the largest quarterly inflows to the firm’s Bitcoin Trust in the product’s six-year history.

Combined year-to-date inflows to the company’s Ethereum Trust and Ethereum Classic Trust have surpassed $100 million, indicating the rising demand for non-Bitcoin products, the company noted.

Almost 80% of quarterly inflows were due to investors converting crypto tokens into shares of various Grayscale products, also referred to as “in-kind” share creations.

Most of the investment capital was contributed by institutions with 84% of inflows coming mainly from hedge funds. Grayscale said this has been a steady long-term trend, which remained consistent this year.

Grayscale currently has around $2.1 billion of assets under management.

Average weekly investment during Q3 was $19.6 million, with most of the capital ($13.2 million) being allocated toward the Grayscale Bitcoin Trust. The Grayscale Products ex Bitcoin Trust received $6.4 million.

Total investment into Grayscale products year-to-date was $382.3 million, with average weekly investment YTD across all products at $9.8 million.

Total investment into Grayscale products for the trailing 12 months stands at $412.3 million, with average weekly investment for the same period at $7.9 million.

You can view the full report here


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