Grayscale Reports 84 Percent Investment from Institutions

Grayscale Reports 84 Percent Investment from Institutions

July 17, 2019

Crypto asset manager Grayscale Investments has received a total investment of $84.8 million during the second quarter of 2019.

According to the official announcement, the investment company has almost tripled the value of its asset under management (AUM) which went up from $926 million to $2.7 billion.

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7/16/19 UPDATE: Holdings per share, net assets under management and digital assets per share for our investment products.

Total AUM: $2.5 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/jt9vB9Y1hS

— Grayscale (@GrayscaleInvest) July 16, 2019

“With a nearly 100% increase in quarter-over-quarter product inflows, this growth demonstrates that the recent rally in digital asset prices is supported by fresh investment,” the company noted.

A great quarter amid market surge

Grayscale currently manages nine single digital asset investment products along with a diversified product of a large-cap fund. The largest holding of the firm is in Grayscale Bitcoin Trust which holds an AUM of over $2.4 billion.

According to the company, in Q2 2019, it recorded quarterly positive results for the first time across all its investment products.

The company also stressed on the influx of institutional investors in the market which can be seen from the jump in investments in its products.

“Inflows nearly doubled quarter-over-quarter, from $42.7 to $84.8 million, demonstrating that the recent rally in digital asset prices is supported by fresh investment,” Grayscale stated. “More than 70% of inflows this quarter were associated with contributions of digital assets into the Grayscale family of products “in-kind” in exchange for shares, an uptick from the longterm trend.”

The firm also revealed that its alternative investment products accounted for 24 percent of the fresh inflow of capital.

“Q2 2019 inflows into the Grayscale Ethereum Trust reached $14 million followed by Grayscale Ethereum Classic Trust which reached $5.5 million. In addition, 76% of Q2 2019 inflows were into Grayscale Bitcoin Trust,” the company added.

Earlier this month, the asset management company resumed private placement of its GBTC shares to accredited investors for a daily subscription.

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