Grayscale Investments earned $3.3 billion through its cryptocurrency investment funds in Q4 2020, a record for the digital asset manager and more confirmation of the institutional base of this rally. On January 15, the organization earned more than $700 million, seeing improved traction from Q4, Michael Sonnenshein, CEO of digital asset manager Grayscale Investments, tweeted.
With an average of $217 million raised last week, the Grayscale Bitcoin Trust, which is the most successful commodity of the firm, led the pack in Q4.
1/15/2021 was also our largest single asset raise day, ever.
— Michael Sonnenshein (@Sonnenshein) January 16, 2021
The new Grayscale data reveals that the company had a $27.1 billion record under control on Jan. 15; it approached 2020 with only $2 billion.
Grayscale’s Spectacular 2020
During the third quarter of 2020, Grayscale raised $1.05 billion for its acquisition acquisitions, marking the largest cash inflow in a single quarter in the history of the company.
The year-to-date Grayscale Trust spending has surpassed $2.4 billion, more than double the cumulative commodity inflow of $1.2 billion from 2013-2019. Grayscale BTC Trust, created back in 2013, is the company’s biggest trust. The aggregate value has now crossed $8.2 billion for Grayscale BTC trust-managed assets.
The trust holds 481,711 bitcoins, according to Bitcoin Treasuries figures, which contrasts to 62 percent of the 814,359 bitcoins owned by publicly traded companies.
Demand for other Grayscale items grew considerably in the third quarter, with investments in items outside of Grayscale Bitcoin Trust accounting for 31 percent of inflows in Q3 2020.
Among alternate assets, the most important growth in demand for Grayscale goods has emerged. On average, these forms of assets saw inflows grow by over 1,400 percent quarter-over-quarter.
The bulk of financing appeared to come from retail investors, which accounted for 81% of the investment in 3Q20. In addition, investors are beginning to expand their exposure to digital real estate, with multi-product investors responsible for 57 percent of investments in 3Q20.
Greyscale’s Cryptocurrency Interest
Grayscale Investments is a well known trendsetter in the Bitcoin space. The New York-based corporation presently controls 449,596 BTC, which ultimately amounts to $5.1 billion and accounts for 2.14 trillion of the total distributed digital currency portfolio, from the Bitcoin Trust Fund (GBTC), which owns and monitors Bitcoin’s valuation.
By 2020, the Trust had almost increased its portfolio in the OTCQX market by 70% of all newly minted bitcoins. Gbtc holds the BTC on behalf of accredited business buyers, who usually value Bitcoin’s decentralized nature and its reputation as the next currency.
10 crypto investment funds aimed at retail investors are controlled by the firm. Ethereum, Bitcoin Gold, Zcash, XRP, and more are part of the Altcoin portfolios of Grayscale.
