Grayscale’s Bitcoin Trust hits all-time high – Institutional investors on the rise

The demand for Bitcoin from institutional investors continues to grow. Between July and September, $ 1.05 billion went into Grayscale’s investment products, the majority of it in Bitcoin. This was the third record quarter in a row for the company.

Grayscale Investments, the world’s largest digital asset management company, released its third quarter investment report highlighting another exceptional quarter for institutional interest in Bitcoin.

The highlight of the report is that the 3rd quarter of 2020 was the most successful quarter in Grayscale’s history. During this period, investors invested $ 1.05 billion in Grayscale’s products. This was the largest cash inflow the company has seen in a single quarter since it was founded.

Grayscale’s Bitcoin Trust breaks records

Of all of its products, the Grayscale Bitcoin Trust brought in the most funds, seeing an inflow of approximately $ 720 million in the most recent quarter.

GBTC also emerged as the best-performing product for Grayscale in terms of assets under management, which rose from $ 1.9 billion to $ 4.8 billion year-to-date. This clearly shows how strong the interest in Bitcoin is still.

Grayscale Bitcoin Trust

Grayscale went on to say that the demand for other investment products has also increased. 31% of the investment sums went into products other than the Bitcoin Trust. These inflows show that investors are also bullish on altcoins.

Among the alternative products, according to the report, investors had the greatest demand for the Grayscale Bitcoin Cash Trust (BCHG), Grayscale Litecoin Trust (LTCN) and Grayscale Digital Large Cap Fund (GDLC).

Financial institutions want cryptocurrencies

Grayscale reported that more than 80% of investments in its products came from institutional investors during the quarter. Here it was the hedge funds that dominated institutional investments.

The report also mentioned that capital inflows into the various products since the beginning of the year exceeded $ 2.4 billion. That’s more than double the $ 1.2 billion in mutual funds the company secured for its products between 2013-2019.

Another point is the startling increase in Grayscale’s assets under management over the last quarter. Assets under management for all products reached an all-time high in the third quarter. It rose from $ 2.0 billion to $ 5.9 billion, an increase of 195%.

Sustained growth in Grayscale’s cryptocurrency investment products could be an indication of what the rest of the market is in for. Bitcoin is also at the top here and currently enjoys the most attention.