Grayscale raised a record $ 503.7 million for the I quarter of 2020
Grayscale, the crypto asset portfolio management company, has reported a record investment inflow over its entire history – $ 503.7 million for the first quarter of 2020.
According to Grayscale, in the first quarter of this year, the company received $ 503.7 million in investment for the entire series of investment products. Of the total amount of $ 388.9 million, it falls on the Grayscale Bitcoin Trust (GBTC) fund, which specializes in investing in bitcoin. These figures are almost double the previous maximum Grayscale for the third quarter of last year – $ 254.8 million.
Despite the decline in the market for traditional and digital assets due to the coronavirus pandemic, from the end of March the flow of investment in the air increased, which begins to exceed the performance of bitcoin. Grayscale received a stable cash injection until March 20, but in the last week of the month the volume of investments in its funds decreased.
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Grayscale Managing Director Michael Sonnenshein said the company will continue to maintain this momentum. An analysis of the company’s activities showed that institutional investors are showing an increasing interest in the cryptocurrency industry. According to Grayscale, after the company opened, 90% of the investment flow came from hedge funds and family trust companies.
Moreover, the first quarter of this year is distinguished by different types of customers. Today, 46.5% of investments come from investors who use different asset management strategies. Investors specializing exclusively in cryptocurrencies make up only 11.2%.
Amid economic uncertainty, many capital management companies decide to increase their investments in cryptocurrencies, as they value the constant monetary policy of Bitcoin and its limited volume. However, according to the head of one of these companies, it is too early to speculate on a correlation with traditional assets, but as Bitcoin is introduced as an asset class, the correlation will increase.
Recall that the Grayscale investment record for Q3 2018 amounted to $ 330 million.In addition, in November Grayscale filed an application with the U.S. Securities and Exchange Commission (SEC) to register a GBTC trust in order to simplify investors’ interaction with exchange funds.