Digital Currency Asset Manager Experiences Another Record-Breaking Quarter, Reflecting Demand for Digital Currency Asset Class
Grayscale Investments®, the world’s largest digital currency asset manager, today released its 3Q20 Grayscale Digital Asset Investment Report, a comprehensive report that highlights investment activity across the Grayscale family of products.
During the third quarter of 2020, Grayscale raised $1.05 billion into its investment products, marking the largest capital inflow in a single quarter in the firm’s history. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019.
Grayscale® Bitcoin Trust continued to lead investment demand, with inflows of $719.3 million in 3Q20. The Trust’s AUM has grown 147% YTD, making it one of the fastest growing investment products.
Demand for other Grayscale products grew significantly in the third quarter as well, with investment into products excluding Grayscale Bitcoin Trust accounting for 31% of inflows during 3Q20. 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 majority of investment continued to come from institutional investors, accounting for 81% of investment in 3Q20. Additionally, investors continue to broaden their digital asset exposure, with 57% of investment coming from multi-product investors in 3Q20.
