Grayscale Products Went Up 40% In Q1 2019 As Offshore Hedge Funds Wanted BTC Exposure
The largest Bitcoin asset manager in the whole world, Grayscale, has released the Q1 investment report on its products lately. In the report, one can see the details of investment product inflows and more information about how their business went up this year.
For instance, the company has seen a 40$ QoQ bump in the inflow of its products, which is huge. The numbers were only $30 million USD in the last quarter of 2018 and then $42 million in the following one.
According to the reports, the contrast is even higher when compared to the prior 12 months, as 99% of its inflows went to the Bitcoin trust of the company. In the previous year, the number was 76%.
Another important aspect that should be seen from the data is that the fund had a shift in its own client mix during the quarter. A lot of funds came from hedge funds.
When compared to the previous year, the number can be astonishing as the number of hedge funds was considerably lower than now. The clients were all still accredited investors, but the hedge funds entered the market strongly, they invested less than a million in last year’s quarters and $24 million USD in the first quarter of 2019.
This could mean that several offshore hedge funds are now interested in investing more in Bitcoin now. Specifically, they are 32% up when compared to last year. Accredited investors grew 7% in last year’s quarter and only 1% this year, while family offices grew 10% this year.