The world’s largest crypto assets manager, Grayscale has caused a stir in the crypto market today, by announcing an all-time high of $1.05 billion worth of new crypto investments in the third quarter of 2020.
Grayscale’s Bitcoin Trust, which is by far its biggest portfolio has been recording a weekly average investment of $55.3 million, followed by its Ethereum Trust at $15.6 million. The Digital Large Cap Fund came in third at $3.5 million, bringing the total weekly average to $80.5 million. Grayscale wrote on Twitter:
“We just recorded our largest ever quarterly inflows-over $1.0 billion in 3Q20-making it the third consecutive record-breaking quarter. YTD investment into the Grayscale family of products has surpassed 2.4 billion.”
The news has been well received in the crypto community with many top analysts and crypto investors saying that this level of buying is extremely bullish, particularly for Bitcoin and Ethereum.
Surprisingly, 84% of the buyers, according to Grayscale, are institutional investors and especially hedge funds, which have seemingly been buying and increasing their crypto portfolios in silence.
“Majority of investment (84%) came from institutional investors, dominated by hedge funds.”
Grayscale’s Bitcoin Trust Records Fastest Growth
Grayscale’s announcement is the latest piling list of developments in the crypto market that indicates exponential trust in Bitcoin as a Store of Value. Not only has Grayscale’s AUM surged from $1.9 billion to $4.7 billion Year-to-Date, but its Bitcoin Trust has recorded the fastest growth of $719.3 million.
“If the Trust were compared to global ETPs and ETFs with over $1B AUM at the start of the year, it would rank as the third-fastest growing product YTD with an AUM increase of approximately 147%.”
The total amount of Bitcoin bought via Grayscale now accounts for 77% of the newly mined Bitcoin supply. Grayscale also added that the rest of its alternative products, including Bitcoin Cash and Litecoin, have also experienced increased growth, accounting for 31% of total inflows in Q3 2020.
Hard Not to Be Bullish
Grayscale news follows in tandem with the rising institutional investments in Bitcoin, especially the latest $115million investment by Stone Ridge.
Square and MicroStrategy have also contributed to the bullish sentiment in the crypto market and particularly Square’s $50 million BTC investment that arguably pushed BTC over the $11,000 mark.
According to Bitcoin Partisan and Morgan Creeks’ co-founder Anthony Pompliano, the unfolding events in the crypto space indicate the onset of a new, extremely bullish cycle.
“Grayscale raised $1 billion in Q3, which is their largest quarter ever. Hard not to be bullish.”
BTC has so far shown little to no reaction to Grayscale’s announcement, at the current trading price of $11,336.