Investors Direct More Than $3 Billion to Grayscale Investments in Q4 2020

Record-setting investments across Grayscale’s family of products reflected soaring demand and growing acceptance of digital currency asset class among financial institutions

New York, Jan. 14, 2021 (GLOBE NEWSWIRE) -- Grayscale Investments, the world’s largest digital currency asset manager, today released its 4Q20 Grayscale Digital Asset Report, a comprehensive look at investment activity across Grayscale’s investment products in the quarter, as well as a summary of 2020 activity for the firm.

Interest in Bitcoin investment products soared in 2020, with each consecutive quarter setting a new record for the firm’s inflows. In the final quarter of 2020, Grayscale raised $3.3 billion in total, more than tripling its previous record of $1.05 billion raised in 3Q20. Notably, Grayscale raised nearly $1 billion in the last week of December before the quarter closed.

In 2020, Grayscale raised more than $5.7 billion across its family of investment products, more than four times the $1.2 billion cumulative inflows the firm received from its inception in 2013 through the end of 2019. While the firm began 2020 with $2.0 billion in assets under management, it now holds more than $24.7 billion in assets as of January 13, 2021, making it one of the fastest growing asset managers of all time.

Institutional investors participated meaningfully in 4Q20, with 93% of capital inflows to Grayscale’s products coming from this segment of investors, encouraged by announcements from major corporations and influential investors supporting the asset class. Traditionally, this cohort comprised about 80% of Grayscale’s investor mix. The average commitment of institutions also rose dramatically, from an average of $2.9 million in 3Q20 to $6.8 million in 4Q20.

Continuing past trends, Grayscale Bitcoin Trust led investment demand with inflows of $2.8 billion in 4Q20. 

Demand for other Grayscale products reached record levels as well, up nearly 1,300% compared to 4Q19. In 2020, investors allocated $1.0 billion to products other than Grayscale Bitcoin Trust. The leader in this trend was Grayscale Ethereum Trust, which saw $341.8 million in 4Q20 inflows, and $789.4 million across 2020. 

To read the entire 4Q20 Grayscale Digital Asset Investment Report, visit: https://gryscl.co/3qjAaaN

Grayscale's investment products are available to institutional and individual accredited investors through their respective periodic and ongoing private placements. Grayscale’s single-asset investment products provide exposure to Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), and Zcash (ZEC). Additionally, Grayscale’s diversified investment product, Grayscale Digital Large Cap Fund, provides exposure to the top digital currencies by market capitalization.