Q2 2020 Investment Highlights2

  • Total Investment into Grayscale Products: $905.8 million
  • Average Weekly Investment – All Products: $69.7 million
  • Average Weekly Investment – Grayscale® Bitcoin Trust: $57.8 million
  • Average Weekly Investment – Grayscale® Ethereum Trust: $10.4 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust3: $11.9 million
  • Majority of investment (84%) came from institutional investors, dominated by hedge funds.

First Half of 2020 (“1H20”) Highlights4

  • Total Investment into Grayscale Products: $1.4 billion
  • Average Weekly Investment – All Products: $54.2 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $43.8 million
  • Average Weekly Investment – Grayscale Ethereum Trust: $9.4 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust5: $10.4 million
  • Majority of investment (85%) came from institutional investors, dominated by hedge funds.

Trailing 12-Month (“T12M”) Highlights6

  • Total Investment into Grayscale Products: $1.9 billion
  • Average Weekly Investment – All Products: $36.3 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $28.9 million7
  • Average Weekly Investment – Grayscale Ethereum Trust: $6.3 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust8: $7.4 million
  • Majority of investment (81%) came from institutional investors, dominated by hedge funds.

Billion Dollar 1H20 and Largest Quarterly Raise: Grayscale recorded its largest quarterly inflows, $905.8 million in 2Q20, nearly double the previous quarterly high of $503.7 million in 1Q20. For the first time, inflows into Grayscale products over a 6-month period crossed the $1 billion threshold, demonstrating sustained demand for digital asset exposure despite a backdrop characterized by economic uncertainty. 

Cumulative investment across the Grayscale family of products since inception has reached $2.6 billion.  Grayscale Bitcoin Trust and Grayscale Ethereum Trust both experienced record quarterly inflows of $751.1 million and $135.2 million, respectively.

Grayscale Bitcoin Trust Inflows Exceeded Newly Mined Bitcoin: After Bitcoin’s halving in May, 2Q20 inflows into the Grayscale Bitcoin Trust surpassed the number of newly-mined Bitcoin over the same period. With so much inflow to Grayscale Bitcoin Trust relative to newly-mined Bitcoin, there is a significant reduction in supply-side pressure, which may be a positive sign for Bitcoin price appreciation. However, these comparisons are simply to illustrate supply and demand in the market. They do not provide insight into the destination of any mined Bitcoin during the measured periods.

New Investor Interest and Multi-Product Institutional Investors: In 2Q20, new investors accounted for $124.1 million of inflows and 57% of the investor base. Additionally, 81% of returning institutional investors in 2Q20 have now allocated to multiple products, an increase from T12M of 71%.

Alternatives Continue to Gain Momentum: In 2Q20, Grayscale® Ethereum Trust accounted for almost 15% of total inflows into the Grayscale products, the highest percentage to date. Grayscale® Ethereum Classic Trust and Grayscale® Digital Large Cap Fund combined have exceeded $50 million of inflows during the last 12 months. The Grayscale® Litecoin Trust saw its largest inflows to date, and the Grayscale® Bitcoin Cash Trust saw its largest inflow since 2Q18.

Download the full Grayscale Digital Asset Investment Report (Q2 2020) below.

1. As of June 30, 2020.
2. For the period from April 1, 2020 through June 30, 2020.
3. “Grayscale Products ex Bitcoin Trust” 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 January 1, 2020 through June 30, 2020.
5. See footnote 3.
6. For the period from July 1, 2019 through June 30, 2020.
7. Grayscale Bitcoin Trust was periodically closed to new investment throughout 2019.
8. See footnote 3.