U.S. Markets closed

Crypto asset manager Grayscale posts its best year with over $600 million in investments

Yilun Cheng

Crypto asset management giant Grayscale Investment brought in more than $600 million from investors during 2019.

According to Grayscale’s newly released “2019 Digital Asset Investment Report,” the firm garnered $607.7 million in investments last year, exceeding the cumulative amount from 2013 through 2018 and bringing the total brought in to $1.17 billion.

In Q3 and Q4, especially, Grayscale saw back-to-back quarterly investments of over $225 million. Its bitcoin trust fund also brought in $193.8 million in Q4 – the largest quarterly raise since inception.

Moreover, the asset manager expanded its investor base by 24% in 2019, with its new clients accounting for $146.9 million of the total investment, according to the report. Notably, 36% of all Grayscale clients now allocate to more than one product issued by the firm.

The report also showcased the degree of interest from institutional investors. In 2019, 71% of Grayscale’s total investment figure came from institutions – primarily hedge funds – which marks a steady increase from 66% in 2018.

“As the largest digital currency asset manager, we feel that our numbers are indicative of broader market sentiment and institutional flows into digital currency,” a Grayscale spokesperson told The Block. “I think there was a lot that happened in Q4 that continued to sustain investor demand.”