Crypto Asset Manager Grayscale Reports Increased Institutional Activity in 2019

Crypto asset management giant Grayscale Investment has reported an impressive 2019, with more than $600 million from investors throughout the year.

According to a 2019 digital asset investment report released by Grayscale, the digital giant has managed to raise over $607.7 million in investments throughout 2019, with most of the record-breaking figures coming from institutional investors. As stated in the report, the 2019 numbers have exceeded cumulative amount from 2013 to 2018, and bringing the total amount to $1.17 billion.

The New York-based digital asset giant specializes in providing their customers with up-to-date market information, investment exposure, and diversification, as well as a range of investment products that meet the needs of today’s ever-expanding class of digital assets.

In a comprehensive document, the company has reported a record breaking amount in Q4 of 2019, raising $225.5 million into its investment products.

The company’s leading investment products – Bitcoin Trust – has managed to garner more than $470 million in 2019, with $193 million of which was accumulated in the Q4 alone – the largest quarterly raise since its establishment. In addition to that, the product earns a weekly investment average of over $9 million.

Moreover, Grayscale’s total weekly investments for Q4 averaged $17.3 million – a stark comparison to the weekly $11.7 million throughout 2019.

In the meantime, Grayscale has managed to expand its investment base by 24% in 2019, which brought in a total of $146.9 million in investment funding. The remaining $460.8 million came from their existing investors, of which 36% have now diversified their holdings across multiple investment product issued by the company.

The report further revealed that a total of 71% of Grayscale’s total investment numbers came from institutional investors, primarily hedge funds, and thus marking a steady increase from 66% in 2018.

Following the news, managing director Michael Sonnenshein has stated:

“We saw record-breaking investment into Grayscale’s family of products, illustrating continued demand from investors for digital currency access products and with a majority of investment coming from institutions, it’s clear that we’re experiencing institutional adoption.” 

On the other hand, communications director Marissa Arnold has pointed out the shift from traditional investors towards the digital industry, stating:

 “As the largest digital currency asset manager, we feel that our numbers are indicative of broader market sentiment and institutional flows into digital currency.” 

In addition to that, she believes that Q4 is proof that showcased what carried on the investor demand.

Whilst 2019 may not have been the best year for digital assets, Grayscale has managed to raise an impressive amount of capital through investment, thus proving that there is a bright future for digital investments.

Although it’s still too early to say how well the company will fare in Q1 of 2020, if the company keeps this pace up, then more significant numbers are expected from Grayscale in the coming months.