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.
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.