Credit: Original article published by Crypto Briefing Blog.

Grayscale began 2020 with $2 billion in assets under management (AUM) and finished the year with over $20 billion AUM. In the latest report, the firm identifies “unprecedented” institutional demand as its growth source. 

Grayscale’s Success by the Numbers

The Grayscale Bitcoin trust received $217.1 million on average every week in new investments during Q4 of 2020. 

The Ethereum Trust drew in average weekly investments of $26.3 million, while other products, excluding the Bitcoin Trust and Digital Large Cap Fund, received $33.6 million and $1.6 million, respectively, in weekly investment.

Investor profile for Grayscale products. Source: Grayscale

The vast majority of investment came from institutional investors in Q4, with 93% of all inflows from institutional investors like asset managers. 

The firm reported “unprecedented investor demand” in the last three months of the year, with $3.3 billion inflows. Inflows for the entire year were $5.7 billion.

Grayscale also noted that institutions are committing larger sums on average to the trust than last year. The average investment from an institution rose from $2.9 million to $6.8 million in 2020.

The Bitcoin Trust, however, has been the centerpiece product for the firm. 

Grayscale Bitcoin Trust saw similar growth from $1.8 billion AUM to $17.5 billion AUM over the year, making the trust one of the fastest-growing investment products globally.

During 2020, inflows into the Bitcoin Trust product outpaced the value of mined Bitcoin itself. 

Disclosure: At the time of press, the author held Bitcoin.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.



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