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.
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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.
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.
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