Crypto Hedge Fund Grayscale Investments Shows Another Record-Breaking Growth

News / 16.10.2020

As Bitcoin’s demand as a reserve fund grows, more and more publicly traded companies are opting to invest in the cryptocurrency. As per the new quarterly report from Grayscale Investments, more than a billion-dollar were poured into the investment firm. Making it the best performing quarter for its investment products and the third consecutive quarter with massive growth. Grayscale Bitcoin Trust (GBTC) got the largest cash inflow out of all its products, over $720 million. Meaning the trust has absorbed almost 77% of all Bitcoins mined during this period.

Grayscale Altcoin Investment Products

Apart from GBTC, the investment firm also received massive interest in its altcoins based products. These products include Grayscale Bitcoin Cash Trust (BCHG), Grayscale Litecoin Trust (LTCN), and Grayscale Digital Large Cap Fund (GDLC). Thus accounting for approx 30% of inflow during this quarter. At the same time, seeing more than 1400% quarter-over-quarter increase in altcoin derivative products. The firm also reports the majority of its investment coming from institutional investors.

Grayscale – third’s fastest-growing product YTD

The investment firm has $5.9 billion worth of total assets under management (AUM). At the same time, its Bitcoin Trust has seen a surge of over $2.9 billion YTD. It also claims to ranks as the third-fastest growing product YTD with an AUM increase of approximately 147%.

Average Weekly Investment – Q3 2020

Looking at the average weekly investment for 3Q 2020, the investment firm saw over $80 million across the range of all its products. In comparison, the Grayscale Bitcoin and Ethereum Trust received cash inflow pere weekly around $55.3 million and $15.6 million, respectively. Talking about other investment products for average weekly investment, Grayscale Digital Large Cap Fund saw cash inflow worth $3.5 million.

In other news, there are also rumors of Rothschild Corp investing $235,000 in Grayscale Bitcoin Trust. If it’s true, it will be the Rothschild second large investment in GBTC. Earlier, the corp made a similar investment in the year 2017.

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"