Q1 2019 Investment Highlights2

  • Total Investment into Grayscale Products: $42.7 million
  • Average Weekly Investment – All Products: $3.3 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $3.2 million
  • Average Weekly Investment – “Non-Bitcoin” Investment Products3: <$0.1 million
  • Majority of investment came from institutional investors (73%) dominated by hedge funds (56%).

Trailing 12-Month Investment Highlights4

  • Total Investment into Grayscale Products: $266.0 million
  • Average Weekly Investment – All Products: $5.1 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $3.9 million
  • Average Weekly Investment – “Non-Bitcoin” Products5: $1.2 million
  • Majority of investment (73%) came from institutional investors.

The Takeaway

Prices Rebound: Q1 2019 marked the first positive quarterly performance since the end of 2017 for Grayscale Bitcoin Trust, Grayscale Digital Large Cap Fund, and the broader digital asset market, represented by the Fundstrat Crypto Aggregate Index. Six out of the ten investment vehicles included in the Grayscale family of products generated positive performance net of fees.

Investment Rebounds: Grayscale experienced a 42% uptick in product inflows quarter-over quarter, from $30.1 million in 4Q18 to $42.7 million in 1Q19. Notably, hedge funds ramped up their investments substantially, from less than $1 million in 4Q18 to approximately $24 million in 1Q19.

What’s Driving Inflows: Risk or Return? Nearly all inflows in Q1 were into Grayscale Bitcoin Trust (99%). One possible explanation for this is that Bitcoin found a “sweet spot” with respect to relative risk and return expectations versus other digital assets. With early signs showing we may be entering a new “risk-on” regime, investors may be wise to look for opportunities in other digital assets as well.

 

Download the full Grayscale Digital Asset Investment Report (Q1 2019) below.

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1. As of April 30, 2019.
2. For the period from January 1, 2019 through March 31, 2019.
3. “Non-Bitcoin” Products include Grayscale Bitcoin Cash Trust, Grayscale Ethereum Trust, Grayscale Ethereum Classic Trust, Grayscale Horizen Trust, Grayscale Litecoin Trust, Grayscale Stellar Lumens Trust, Grayscale XRP Trust, Grayscale Zcash Trust, and Grayscale Digital Large Cap Fund.
4. For the period from April 1, 2018 through March 31, 2019.
5. See footnote 2.