Grayscale Bitcoin Trust released its Q3 2019 report earlier on Tuesday, October 15, 2019 showing increased interest in institutional investment in the crypto industry.
The “Digital Asset Investment Report Q3 2019” states Grayscale holds a total of $2.1 billion USD in crypto assets under management. Grayscale enjoyed a boost in AUM value despite the price of Bitcoin plummeting from $12,000 USD to $8,100 USD during the period.
‘Over $75 million USD inflows in a day’
According to the report, the crypto asset management firm’s AUM has increased by $382 million USD since the start of the year.
The Grayscale Bitcoin Trust (GBTC) product contributed to over 60% of the total inflows averaging $7.1 million USD weekly. The weekly average inflows of the rest of cryptocurrencies including Ethereum, ZCash and Ethereum Classic stands at $2.7 million USD.
Grayscale's AUM grew to $412 million USD in the past one year as institutional investment grows. In a statement on the massive AUM growth during the third quarter, managing director, Michael Sonnenshein, said,
“I actually think that we had a day where we raised over $75 million in a single day — which was the largest inflow we ever had in a single day.”
GBTC investments boss inflows in Q3 2019
In Q3 2019, the company witnessed huge inflows of crypto assets following a highly successful #DropGold campaign, which lured U.S investors to switch from the shiny precious metal to digital gold.
According to the report, an average of $19.6 million USD entered Grayscale’s coffers, totaling $254.9 million USD in the three months. GBTC investments remained popular through the year raising $13.2 million during Q3 2019, representing 67% of the total investments during the quarter.
Excluding the flagship GBTC product, the company’s alternative crypto assets grew by $107 million USD during the quarter. On Monday, the Financial Industry Regulatory Authority (FINRA) approved the trading of Grayscale Digital Large Cap Fund (GDLCF) on OTC markets in the U.S.
Institutional investment is growing
Over 84% of investment in Q3 came from institutional investors including legacy finance and crypto related hedge funds. However, a large number of investors are not native to the crypto field as Sonnenshein explained,
“Most of our institutional investors are actually not crypto hedge fund. It really runs the gamut — we have tons of global macros funds who maybe look at digital assets as a way to be short fiat money or thinking about all the economic and political turmoil going on globally.”
Images sourced from Grayscale Digital Asset Investment report Q3 2019: https://grayscale.co/insights/grayscale-q3-2019-digital-asset-investment-report/