Bitcoin remains the most popular investment asset at 83% with alternatives like Ethereum account for nearly 15% of total inflows. The company was expressing weekly inflows for Q2, 2020 averaging almost $70 million per week across its bitcoin and altcoin funds.
Below is the breakdown of bitcoin investments for 2020 from accredited investors through the GrayScale vehicle:
Total Investment into Grayscale Products: $905.8 million
Average Weekly Investment – All Products: $69.7 million
Average Weekly Investment – Grayscale® Bitcoin Trust: $57.8 million
Average Weekly Investment – Grayscale® Ethereum Trust: $10.4 million
Average Weekly Investment – Grayscale Products ex Bitcoin Trust3: $11.9 million
Majority of investment (84%) came from institutional investors, dominated by hedge funds
Institutional investors, primarily hedge funds, accounted for 84% of Grayscale bitcoin and cryptocurrency fund investment in the second quarter of 2020, up from 81% compared to the previous year.
Grayscale also says new investors now account for 57% of its Q2, 2020 investment portfolio, up from 49% in Q1.
Grayscale stats clearly reflect demand in the asset class in spite of unchanging prices.
Grayscale now accounts for at least 31% of all newly-minted bitcoins and is becoming the most common point of entry for new investors before they allocate to otehr digital assets. Over 81% of all returning institutional investors in Q2 have also divested into other digital assets, an increase of over 71% compared to just one year ago.
According to the Chief Executive at Grayscale, Barry Silbert, most investor conversations have often centered on the unlimited fiscal stimulus being injected into the system with most of them expressing uncertainty as the situation unfolds.
Interestingly, Barry mentioned the company is seeing growing uncertainty especially in the developing world due to deflation fears.