Grayscale, the world’s largest digital currency asset manager, has released its Q4, 2020 and the overall 2020 statistics report revealing just how deep institutional investors are into the crypto and digital assets space.
In the report, Grayscale says it ‘experienced unprecedented investor demand’ that is ‘4 times the $1.2 billion cumulative inflow into the products from 2013-2019.’
According to Grayscale, 2020 saw institutions adding Bitcoin to their balance sheets. In 2021, we may see nation states follow suit.
Speaking about the popularity of the Grayscale Bitcoin Trust, CEO, Michael Sonnenshein, said:
“We saw a meaningful acceleration of institutional participation. There’s no longer professional risk of investing in the digital currency asset class – there’s probably more career risk in not paying attention to it.”
– CEO, Grayscale
Here is a breakdown of the report:
Grayscale began the year with $2.0 billion in assets under management and ended 2020 with $20.2 billion – a 900% increase
In 2020, Grayscale Bitcoin Trust was among the fastest growing investment products in the world, growing from $1.8 billion to $17.5 billion
In 4Q20, Bitcoin inflows were approximately 194% of mined Bitcoin
Institutions have historically accounted for a majority of Grayscale inflows. This was especially true in Q4, 2020 as institutions accounted for 93% of capital inflows, or $3.0 billion
54% of all institutional investors in Grayscale investment portfolio are offshore (outside the United States)
The amount of Bitcoin flowing into Grayscale Bitcoin Trust during Q4, 2020, was nearly double the amount mined over the same period. This trend continues to be a major contributing factor in the limited available supply of Bitcoin in the market
Grayscale Bitcoin Trust accounted for 87% of all inflows to the company’s product family, the highest proportion since Q2, 2017, further evidence of institutions looking to Bitcoin as a reserve asset
In Q4, 2020, inflows to Grayscale Bitcoin Trust were a record $2.8 billion. This brought total 2020 Grayscale Bitcoin Trust inflows to $4.7 billion, over four times the cumulative inflows of the previous six years
In Q4, 2020, Grayscale received substantial inbound interest from wealth managers interested to learn more about Bitcoin to satisfy the growing number of client requests
At $6.8 million, the average institutional allocation was more than double the $2.9 million average in Q3, 2020
Over the course of the year, the amount of circulating Bitcoin under Grayscale management increased from 1.45% to 3.31%
Similarly, the proportion of circulating Ethereum managed by Grayscale increased from 0.47% to 2.61% in 2020
Grayscale Investments is the world’s largest digital currency asset manager, with more than $20.2B in assets under management as of December 31, 2020. Through its family of 9 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.