Connect with us

Crypto

Bitcoin giant Grayscale collected $1.4 billion so far in 2020

According to the Digital Asset Manager, a total of $905.8 million was invested in its products such as the Grayscale Bitcoin Trust in the second quarter of 2020. For the first time, inflows into Grayscale products exceeded the $1 billion mark over a 6-month period, demonstrating continued demand for digital assets despite a background of economic uncertainty.

Published

on

This picture show a bitcoin.

Institutionalization, i.e. the interest of institutional investors in Bitcoin and Co. has long been considered a hot candidate for one of the decisive triggers of a possible next bull run. The hope is that while the price explosion in 2017 was caused by private investor demand, the next time institutional investors will generate additional demand and catapult the price of Bitcoin price to new heights.

Especially in 2020, reports from insiders like Mike Novogratz and figures from companies like Grayscale showed that this development is in full swing. In a new report it now becomes clear how massive the sums invested in Bitcoin and Co. are. These figures give rise to great hopes. 

If you want to find more details about Grayscale’s latest report on Bitcoin, download for free our companion app. Born2Invest application is a fast and easy way to check the latest business headlines. The app gives users access to recent publications and stories, media and objective analysis, thematic sections and feeds. 

Grayscale records in the first half of the year

In its latest “Digital Asset Investment Report” for the 2nd quarter of 2020, the crypto company Grayscale presented new figures and provided insights into how much capital was invested in the company’s investment products for Bitcoin and Co. in the first half of 2020.

According to the Digital Asset Manager, a total of $905.8 million was invested in its products such as the Grayscale Bitcoin Trust in the second quarter of 2020. In addition to the capital raised in the 1st quarter, the total for the entire 1st half of 2020 is an incredible $1.4 billion. This is the first time in 6 months that the $1 billion mark has been exceeded.

SEE ALSO  Xi’s state visit to Russia highlights China’s importance on economic stage

For the first time, inflows into Grayscale products exceeded the $1 billion mark over a 6-month period, demonstrating continued demand for digital assets despite a background of economic uncertainty.

According to the report, a full 84% of investors were institutional investors, mainly hedge funds. Of the returning investors, 81% have invested in multiple products.

Bitcoin Trust remains the clear leader

According to the company, the Grayscale Bitcoin Trust remains clearly at the forefront of product sales with inflows of $751.1 million in Q2 2020, making the last quarter the fourth record quarter in a row.

It is also interesting that after the Bitcoin Halving in May, the inflows into the Grayscale Bitcoin Trust exceeded the newly mined BTC for the first time.

Despite the continued clear dominance of the Bitcoin Trust, the company’s other products also gained momentum. For example, $135.2 million was invested in the Grayscale Ethereum Trust in the second quarter, which represents 15% of the total. The Grayscale Litecoin Trust also surpassed its investment records and the Grayscale Bitcoin Cash Trust saw its largest inflow since the second quarter of 2018.

If you are now considering joining the worldwide adoption, i.e. buying BTC and have done your own extensive research, make sure you choose the right exchange or broker. Your money and your coins are only as safe as the partner you trust.

__

(Featured image by christopher_muschitz via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Isaac Atwood is a PR and marketing consultant who has worked with respected names in the financial industry. He has also sat down in many sessions with startups aiming to become the next unicorn. Isaac loves working with CEOs, business executives, and entrepreneurs who wish to enter the following markets: artificial intelligence, cannabis, virtual reality, cryptocurrencies, robotics, wearable and smart tech, and even the much-hyped space race. He is currently managing the brand portfolio of an Asian firm planning for its IPO by the end of the year. While his engagements have taken him around the world, Isaac is proud to call Toronto his home.