Grayscale Investments recorded $1.05 billion in investments during the third quarter of 2020, with 81% coming from institutional investors. This is the largest inflow of funds in a single quarter in Grayscale’s history.
Crypto inflows by Grayscale Investments for the three quarters of 2020 totaled to $2.4 billion. The total is double that of $1.2 billion that has been invested in Grayscale products between 2013 and 2019. In addition, since its inception seven years ago, the company’s investment across its products summed up to $3.6 billion, as of September 30.
Taking the lead is Grayscale Bitcoin Trust which attracted over 70% of the total investments with inflows of $719.3 million. The assets under management for this trust fund has surged more than 147% year-to-date.
Additionally, alternative products accounted for 31% of the inflows during Q3. Among these alternative products, high increases were reported in the Grayscale Bitcoin Cash Trust, the Grayscale Litecoin Trust, and the Grayscale Digital Large Cap Fund.
The report by Grayscale investments noted that:
On average, the aforementioned alternative products saw inflows increase by more than 1,400% quarter-over-quarter.
Following then, Grayscale’s Managing Director Michael Sonnenshein also expressed excitement on this recent achievement.
Dropping our latest Digital Asset Investment Report this morning…@Grayscale raised over $1 billion into our family of products in 3Q20!!
— Michael Sonnenshein (@Sonnenshein) October 14, 2020
The new data from Grayscale suggest that Bitcoin remains the top choice for institutional investors. With big names such as MicroStrategy pouring $425 million of its cash in Bitcoin. Also, $50 million worth of BTC was purchased by Jack Dorsey’s Square last week. Similarly, Stone Ridge subsidiary NYDIG purchased 100 million worth of BTC as part of its treasury reserve strategy.