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.
Additionally, secondary markets exist for six of Grayscale’s products as Grayscale® Bitcoin Trust (OTCQX: GBTC), Grayscale® Bitcoin Cash Trust (OTCQX: BCHG), Grayscale® Ethereum Trust (OTCQX: ETHE), Grayscale® Ethereum Classic Trust (OTCQX: ETCG), Grayscale® Litecoin Trust (OTCQX: LTCN) and Grayscale® Digital Large Cap Fund (OTCQX: GDLC) are publicly-quoted and available to all individual and institutional investors on the OTCQX® Best Market and other OTC Markets.*
*Each Product offers a private placement to accredited investors. The investment objective of each Product is for its Shares (based on digital assets per Share) to reflect the value of digital assets held by such Product, less such Product’s expenses and other liabilities.
Because each Product does not currently operate a redemption program, there can be no assurance that the value of such Product’s Shares will reflect the value of the assets held by such Product, less such Product’s expenses and other liabilities, and the Shares of such Product, if traded on any secondary market, 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 $24.7B in assets under management as of January 13, 2021. Through its family of 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. Grayscale products are distributed by Genesis Global Trading, Inc. (Member FINRA/SIPC, MSRB Registered). For more information, please visit www.grayscale.co and follow @Grayscale.