Digital Currency Asset Manager Experiences Another Record-Breaking Quarter, Reflecting Demand for Digital Currency Asset Class
New York, July 15, 2020 (GLOBE NEWSWIRE) -- Grayscale Investments®, the world’s largest digital currency asset manager, today released its 2Q20 Grayscale Digital Asset Investment Report, a comprehensive report that highlights investment activity across the Grayscale family of products. During the second quarter of 2020, Grayscale raised $905.8 million into its investment products, marking a nearly 80% quarter-over-quarter increase and the largest capital inflow in a single quarter in the firm’s history.
Grayscale® Bitcoin Trust continued to lead investment demand, with record inflows of $751.1 million in 2Q20 – the fourth record-breaking quarter in a row for the Trust. Demand for other Grayscale products grew significantly in the second quarter as well, with investment into products excluding Grayscale Bitcoin Trust up 35% from 1Q20.
The majority of investment continued to come from institutional investors, accounting for 84% of investment in 2Q20. Additionally, as more investors continue to broaden their digital asset exposure, with 81% of returning institutional investors in 2Q20 allocating to multiple products, Grayscale continues to broaden its investor base. In 2Q20, new investors accounted for $124.1 million of inflows and 57% of the investor base, an increase from 49% over the last 12 months.
To read the entire 2Q20 Grayscale Digital Asset Investment Report, visit: https://gryscl.co/2Q20.
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), XRP, and Zcash (ZEC). Additionally, Grayscale’s diversified investment product, Grayscale® Digital Large Cap Fund, provides exposure to the top digital currencies by market capitalization. As of June 30, 2020, Grayscale had approximately $4.0 billion in assets under management across its family of 10 products.
Additionally, secondary markets exist for four of Grayscale’s products as Grayscale Bitcoin Trust (OTCQX: GBTC), Grayscale® Ethereum Trust (OTCQX: ETHE), Grayscale® Ethereum Classic Trust (OTCQX: ETCG), and Grayscale Digital Large Cap Fund (OTCQX: GDLC) are publicly-quoted and available to all individual and institutional investors on the OTCQX® Best Market.*
*Because each product does not currently operate a redemption program, there can be no assurance that the value of the Shares of such product will approximate the value of the underlying assets held by such product, less such product’s expenses and other liabilities, and the Shares of such product may trade at a substantial premium over, or a substantial discount to, the value of the assets held by such product, less such product’s expenses and other liabilities, and such product may be unable to meet its investment objective.
This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Grayscale Investments®
Grayscale Investments is the world’s largest digital currency asset manager, with more than $4.0B in assets under management as of June 30, 2020. Through its family of 10 investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a traditional security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. For more information, please visit www.grayscale.co and follow @GrayscaleInvest.