Digital Asset Investment Report: Q1 2020

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Q1 2020 Investment Highlights1
  • Total Investment into Grayscale Products: $503.7 million
  • Average Weekly Investment – All Products: $38.7 million
  • Average Weekly Investment – Grayscale® Bitcoin Trust: $29.9 million
  • Average Weekly Investment – Grayscale® Ethereum Trust: $8.5 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust2$8.8 million
  • Majority of investment (88%) came from institutional investors, dominated by hedge funds.
Trailing 12-Month Highlights3
  • Total Investment into Grayscale Products: $1.07 billion
  • Average Weekly Investment – All Products: $20.6 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $15.7 million4
  • Average Weekly Investment – Grayscale Ethereum Trust: $4.0 million
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust5$4.8 million
  • Majority of investment (79%) came from institutional investors, dominated by hedge funds.

The Takeaway

Largest Quarterly Raise in Grayscale History: Grayscale raised $503.7 million in 1Q20, nearly double the previous quarterly high of $254.8 in 3Q19. New investors accounted for $160.1 million in inflows. Grayscale Bitcoin Trust and Grayscale Ethereum Trust both experienced record quarterly inflows of $388.9 million and $110.0 million, respectively.

 

Billion Dollar Year: For the first time, inflows into Grayscale products over a 12-month period crossed the $1 billion threshold ($1.07 billion), showing strong and sustained evidence that investors are increasing their digital asset exposure at current levels. Cumulative investment across the Grayscale family of products since inception has reached $1.68 billion.6

 

Hedge Fund Investment Gains Steam: 88% of inflows this quarter came from institutional investors, the overwhelming majority of which were hedge funds. The mandate and strategic focus of these funds is broadly mixed and includes Multi-Strat, Global Macro, Arbitrage, Long/Short Equity, Event Driven, and Crypto-focused funds.

 

Investors Further Diversify: Approximately 38% of investors now have allocations to multiple products within the Grayscale family, up from 29% at the end of 1Q19.

 

Download the full Grayscale Digital Asset Investment Report (Q1 2020) below.

1 For the period from January 1, 2020 through March 31, 2019.
2 “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.
3 For the period from April 1, 2019 through March 31, 2020.
4 Grayscale Bitcoin Trust was periodically closed to new investment throughout 2019.
5 See footnote 2.
6 Inception date: September 25, 2013.

Access the Report

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