Grayscale Investments Adding $10 Million to Bitcoin Trusts Weekly
Grayscale Investments has just released a Digital Asset Investment Report for the first half of 2018. The company is reporting substantial gains in its Bitcoin Investment Trust (OTC: GBTC), along with nearly $250 million total investments into Grayscale Products.
“As the investment community knows, over the last six months, the digital asset market experienced one of the largest price drawdowns since the inception of Bitcoin in 2009,” the report reads. “However, what is more interesting, and somewhat counterintuitive, is that the pace of investment into Grayscale products has accelerated to a level that we have not seen before. In fact, we raised nearly $250 million in new assets in the first half of this year, marking the strongest inflows of any six month period in the history of our business.”
Perhaps most notably, the new report shows that Grayscale Investments is currently seeing nearly $10 million in weekly inflows into cryptocurrency investments, with the majority of these assets being directed into the company’s Bitcoin Investment Trust—which now totals over $160 million. Grayscale Investments is also seeing exponential growth in non-Bitcoin products as well, including alt-coins such as Ethereum, Zcash, Bitcoin Cash, Ripple, and Litcoin.
The majority of of these assets are reported to be coming from institutional investors, which currently make up 56 percent of Grayscale’s total investment profile. The remaining invested assets are coming from accredited individuals, retirement accounts, and family offices, making up 20, 16 and 8 percent of Grayscale’s total investment profile respectively. According to the report:
“The average investment was $848K for institutional investors, $553K for family offices, $335K for retirement accounts, and $289K for individuals. It is important to note that this data is skewed by the fact that the investment amounts do not necessarily fall within a normal distribution. For example, there were some large, one-time outliers and investments that were broken up into multiple allocations over a series of days. Nonetheless, this should at least paint a general picture of the typical investment amounts we’re seeing from each client segment.
Moreover, if we break down our investor base by geography, roughly 64% of all new investments came from U.S. investors, 26% from offshore investors (e.g. Cayman-domiciled entities), and 10% from investors in other regions of the world.”
Grayscale Investments concluded its report stating that the company hopes that the recent growth in investments will encourage cryptocurrency skeptics to reconsider the potential of cryptocurrency as a means of providing strong and steady capital inflows.
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