Digital Currency Asset Manager Experiences Another Record-Breaking Quarter, Reflecting Demand for Digital Currency Asset Class.
Grayscale Investments®, the world’s largest digital currency asset manager, today released its 3Q20 Grayscale Digital Asset Investment Report, a comprehensive report that highlights investment activity across the Grayscale family of products.
During the third quarter of 2020, Grayscale raised $1.05 billion into its investment products, marking the largest capital inflow in a single quarter in the firm’s history. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019.
Grayscale® Bitcoin Trust continued to lead investment demand, with inflows of $719.3 million in 3Q20. The Trust’s AUM has grown 147% YTD, making it one of the fastest growing investment products.
Demand for other Grayscale products grew significantly in the third quarter as well, with investment into products excluding Grayscale Bitcoin Trust accounting for 31% of inflows during 3Q20. Among alternative products, the most notable increase in appetite has emerged for Grayscale® Bitcoin Cash Trust, Grayscale® Litecoin Trust, and Grayscale® Digital Large Cap Fund. On average, the aforementioned products saw inflows increase by more than 1,400% quarter-over-quarter.
The majority of investment continued to come from institutional investors, accounting for 81% of investment in 3Q20. Additionally, investors continue to broaden their digital asset exposure, with 57% of investment coming from multi-product investors in 3Q20.
To read the entire 3Q20 Grayscale Digital Asset Investment Report, visit: https://gryscl.co/33RIRkr.
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 September 30, 2020, Grayscale had approximately $5.9 billion in assets under management across its family of 10 products.
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 (OTCM: 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 $5.9B in assets under management as of September 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 @Grayscale.