Q3 2020 Investment Highlights2

  • Total Investment into Grayscale Products: $1.05 Billion
  • Average Weekly Investment – All Products: $80.5 million
  • Average Weekly Investment – Grayscale® Bitcoin Trust: $55.3 million
  • Average Weekly Investment – Grayscale® Ethereum Trust: $15.6 million
  • Average Weekly Investment – Grayscale® Digital Large Cap Fund: $3.5 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust3: $25.2 million
  • Majority of investment (84%) came from institutional investors, dominated by hedge funds.

Trailing 12-Month (“T12M”) Highlights4

  • Total Investment into Grayscale Products: $2.7 billion
  • Average Weekly Investment – All Products: $51.5 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $39.5 million5
  • Average Weekly Investment – Grayscale Ethereum Trust: $9.0 million
  • Average Weekly Investment – Grayscale Digital Large Cap Fund: $1.1 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust6: $12.1 million
  • Majority of investment (80%) came from institutional investors, dominated by hedge funds.

The Takeaway

Billion Dollar Quarter: Grayscale recorded its largest ever quarterly inflows, over $1.0 billion in 3Q20, making it the third consecutive record-breaking quarter. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019. Cumulative investment across the Grayscale family of products since inception now totals $3.6 billion.7

Grayscale Bitcoin Trust Among Fastest Growing Investment Products: Grayscale Bitcoin Trust experienced $719.3 million in 3Q20 inflows. The Trust has seen its assets under management (“AUM”) surge from $1.9 billion to $4.7 billion YTD.  Grayscale Bitcoin Trust does not operate a redemption program and its shares do not trade on a national securities exchange. The trust is therefore not an ETP or ETF. Still, if the Trust were compared to global ETPs and ETFs with over $1B AUM at the start of the year, it would rank as the third-fastest growing product YTD with an AUM increase of approximately 147%.

Alternatives Continue to Gain Momentum: While Bitcoin continues to be a major part of Grayscale investor allocations, the most notable uptick in growth comes from products that hold alternative assets. Products excluding Bitcoin accounted for 31% of inflows during 3Q20. 

Unprecedented Demand for BCH, LTC, and DLC: Among alternative products, the most notable increase in appetite has emerged for Grayscale® Bitcoin Cash Trust, Grayscale® Litecoin Trust, and Grayscale® Digital Large Cap. On average, the aforementioned products saw inflows increase by more than 1400% quarter-over-quarter. These developments followed FINRA’s verification in July that the required diligence to begin quoting the Bitcoin Cash and Litecoin products pursuant to Rule 15c2-11 under the Securities Exchange Act of 1934, as amended, had been completed. 

For more insights, download the full Grayscale Digital Asset Investment Report (Q3 2020) below.

1. As of September 30, 2020.
2. For the period from July 1, 2020 through September 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 October 1, 2019 through September 30, 2020.
5. Grayscale Bitcoin Trust was periodically closed to new investment throughout 2019.
6. See footnote 3.
7. Inception date: September 25, 2013