Grayscale Assets Tripled in Q2 with Institutional Demand Strengthening to Reach its Highest Level

  • Q2 2019 saw the strongest quarterly inflows
  • Institutional investors comprised the highest percentage of total demand at 84%, dominated by hedge funds

In Q2 of 2019, we saw Bitcoin adding $7,000 in its value. We went from $4,100 to over $11,200, at one point BTC/USD climbed to even $13,900.

This surge in BTC price also has Grayscale Investments’s assets under management nearly tripling in this quarter, revealed the company in its Q2 2019 report.

A digital currency investing and cryptocurrency asset management firm, Grayscale majorly deals in Bitcoin along with Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Horizen, XRP, Stellar, and Zcash.

Q2 2019 Saw The Strongest Quarterly Inflows

In the first half of 2019, total investments recorded by the organization has been $127.4 million, out of which $84.8 million belongs to the second quarter. Average weekly investment in its Bitcoin Trust also increased from $4.1 million to $4.9 million.

The digital asset market rebound, as evident from the increase in its investments under management, gained momentum, in Q2 2019. Not just on Bitcoin, but all ten of its investment vehicles generated positive performance.

Quarterly returns for Grayscale Bitcoin Trust registered were 178.8% and 147.6% by Grayscale Digital Large Cap Fund.

“Grayscale assets under management (“AUM”) nearly tripled from $926 million to $2.7 billion amid digital asset market resurgence.”

This has been the “strongest quarterly inflows,” since Q2 of 2018 that nearly doubled quarter-over-quarter, driven by fresh investment.

Interestingly, new investment was temporarily closed throughout May and June.

Hedge Funds Dominated Institutional Investors

As for altcoins' investment cycle, it was led by Ethereum and Ethereum Classic Trust. In Q2, Grayscale Products ex Bitcoin Trust accounted for 24% of inflows while Grayscale Ethereum Trust reached $14 million followed by Grayscale Ethereum Classic Trust which reached $5.5 million.

Additionally, 76% of Q2 2019 inflows were into Grayscale Bitcoin Trust.

This growth in Grayscale products is primarily driven by institutional demand which the company states continue to


In Q2, institutional investors, dominated by hedge funds comprised the highest percentage of total demand for Grayscale products at 84%, since they first started publishing the report a year back.

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