Grayscale Crypto Investment Report Shows Institutional Capital Accounted for 56% of Inflow
Report Shows That Institutional Investors Provided 56% of Capital Inflow to the Market
The first cryptocurrency investment report that has been released on July the 18th shows that the majority of capital inflow in the market this year has been from institutional investors. The information has been provided by Grayscale Investments.
The report reveals something that most of the crypto enthusiasts was waiting to hear, even when the results are not those expected by all of them. During the last year, the price of the famous virtual currency grew from $1,000 dollars to $20,000, mostly pushed by retail investors.
Since December 2018, Bitcoin is in a bear market. Indeed, it was traded under $6,000 in several occasions. At the moment of writing, Bitcoin is being traded around $6,400 dollars and has a market capitalization of $128 billion dollars.
Grayscale has analysed the investment made into five important cryptocurrencies after launching a Bitcoin (BTC) Investment Trust in 2013. It expanded to other asset funds such as Ethereum Classic (ETC), Zcash (ZEC) and Litecoin (LTC).
More than half (56%) of the new investment into Grayscale products during the first half of this year, became from institutional investors. And even when the market seems bearish and has shown and proved to be in a bear moment, the pace of investment has ‘accelerated to a level that we have not seen before.’
As per the report, the total investment in June was almost $248 million dollars, one of the strongest ever fundraising periods since 2013. 63% of the capital has been used to invest in the Bitcoin investment Trust. It is important to mention that accredited individuals account for 20% of the total fund, retirement accounts 16%, and family offices 8 percent.
Additionally, 64% of the investment came from the United States, 26% from investors in offshore jurisdictions, and 10% from other regions. The average investment sum was $848,000 dollars for those institutional investors participating, $553,000 for family offices, $335,000 for retirement accounts and $289,000 for individuals.
Of course, several cryptocurrency investors considered this bear market as the best moment to enter and gain exposure to virtual currencies. In the middle and long term, experts are very bullish on cryptocurrencies and Bitcoin.
In the near future, a Bitcoin ETF could be approved by the SEC and the market is already positive in these news. Of course, the decision taken by the Securities and Exchange Commission may be negative and pause a short-term market increase.