Grayscale Marks Record-Breaking Year With Inflows Worth $600 Mln

Shailesh  |  Jan 17, 2020

Recently, Grayscale, a prominent crypto asset manager, reported inflows worth $600 mln last year, surpassing the cumulative amount if seen from 2013 to 2018. Including everything, Grayscale products have witnessed investors providing supplies worth $1.17 bln. It was Grayscale Bitcoin Trust (GBTC) product, which enabled investors to get exposure to bitcoin without any management of private keys. GBDT observed $193.8 mln spent in it in Q4 2019.

Grayscale’s Digital Asset Investment Report 2019

According to the "2019 Digital Asset Investment Report" from Grayscale, a total investment worth $147 mln came from new clients last year. This clearly showed that 24% of the funds came from new investors. Of all of its customers, 36% was reportedly allocated to one of its several products, expanding their crypto portfolios. Distinctly, institutions such as hedge funds made up 71% of Grayscale's investors previous year, up from 66% in 2018. According to a report, Michael Sonnenshein, at the sidelines of a cryptocurrency conference that was organized in Switzerland, cited that if the question is where the institutional investors stand in the crypto industry, then the answer is that the institutional investors are here and have appeared in meaningful size.

GBT Amongst The Elites

He added that the data is a part of a longer-term trend that they have "no reason to think would not be supported in 2020." Grayscale also started an ad campaign saying investors to quit gold and purchase bitcoin, which can often be seen similar to digital gold.

Grayscale's report on its staggering year came shortly after another report revealed that GBT is among top ten equity holdings of millennials, getting into fourth place with 1.84%, after only Amazon, Apple and Tesla. The report noted millennials preferred to invest in GBTC rather than Berkshire Hathaway, Microsoft, Netflix and Alibaba. Other generations have not added any bitcoin-related products in their top 10 holdings, showing millennials preferred cryptocurrencies while other generations still favour the stocks of Berkshire Hathaway, Apple and Amazon.

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