Back to the list

Grayscale Investments Confirms Institutional Interest in Crypto Trusts

16 October 2019 08:01, UTC

The popularity of investment products such as Grayscale cryptocurrency trusts is growing, as confirmed by performance reports. According to the latest report of Grayscale Investments for the Q3 2019, there has been the highest demand for the company's products since its inception.

The total investment in all the company's crypto trusts for the quarter amounted to $254.9 million, which is the highest number in its history. The report added that the inflow increased three times compared with the previous quarter, from $84.8 million to current levels. This happened despite the recent decline in the price of crypto assets.

The key point is that 84% of this capital inflow came from institutional investors, which were dominated by hedge funds. The same indicator for the whole 2019 was 83%.

The BTC Trust saw the most investment — as the company noted:

“In 3Q19, we saw the heaviest quarterly inflows to Grayscale Bitcoin Trust in the product’s six-year history, including nearly $75 million in a single day.”

The volume of investments in the BTC Trust for 2019 amounted to $171.7 million, or 67% of the total. Grayscale's Ethereum Trust also performed well, taking over $100 million this year.