Institutional Investors Dominate Grayscale’s 900% Annual Gains in 2020

Key Takeaways

  • Grayscale assets under management grew 900% in 2020 from $2.2 billion to $20 billion, with BTC spot price rising 100% during that time.
  • Grayscale received $3.3 billion in investments in Q4 last year.
  • Institutional investment accounted for 93% of inflows, mostly by asset managers.

Grayscale began 2020 with $2 billion in assets under management (AUM) and finished the year with over $20 billion AUM. In the latest report, the firm identifies “unprecedented” institutional demand as its growth source. 

Grayscale’s Success by the Numbers

The Grayscale Bitcoin trust received $217.1 million on average every week in new investments during Q4 of 2020. 

The Ethereum Trust drew in average weekly investments of $26.3 million, while other products, excluding the Bitcoin Trust and Digital Large Cap Fund, received $33.6 million and $1.6 million, respectively, in weekly investment.




















The vast majority of investment came from institutional investors in Q4, with 93% of all inflows from institutional investors like asset managers. 

The firm reported “unprecedented investor demand” in the last three months of the year, with $3.3 billion inflows. Inflows for the entire year were $5.7 billion.

Grayscale also noted that institutions are committing larger sums on average to the trust than last year. The average investment from an institution rose from $2.9 million to $6.8 million in 2020.









The Bitcoin Trust, however, has been the centerpiece product for the firm. 

Grayscale Bitcoin Trust saw similar growth from $1.8 billion AUM to $17.5 billion AUM over the year, making the trust one of the fastest-growing investment products globally.

During 2020, inflows into the Bitcoin Trust product outpaced the value of mined Bitcoin itself. 

Disclosure: At the time of press, the author held Bitcoin.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article