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Grayscale Reports Exemplary Q3 Results, Total Inflows Surpass $1 Billion


14 Oct 2020

Grayscale has once again reported exemplary quarterly results, with a $1 billion inflow. The Bitcoin Trust remained at the top, with inflows totalling to $720 million. Other products also reported a significant increase.

Grayscale Investments is one of the largest digital asset management firms. The recently released quarterly results will be the third consecutive time the firm reports more than $1 billion in inflows.

Increased Crypto Interest

The recently released Q3 2020 results showed that total investments at the firm accounted to $1.05 billion in the past three months. This means that since the beginning of the year, the total inflows have increased to around $2.4 billion.

This is the best performing year for Grayscale since inception. Between 2013 and 2019, the asset manager recorded inflows of around $1.2 billion. This year’s data shows a massive increase in crypto products, with the current number being two times higher.

The overall amount invested in Grayscale since inception has increased to $3.63 billion. Institutional investors are still taking the lead, as they accounted for 81% of all the Q3 inflows. However, the firm also reported a change in investments from individuals and family offices. The accredited investors who directed funds into Grayscale decreased from 12% to 8%. On the other hand, the amount allocated to family offices increased from 4% to 8%.

Bitcoin Trust Still Booming

The recently released financial data also pointed out to the Bitcoin Trust, whose increase was the most significant. The total inflow related to this trust increased by more than $700 million. However, Q3’s BTC inflows were lower than the previous quarter, where the inflows totalled $750 million.

Grayscale also mentioned that while BTC remained the largest part of the firm’s total investments, there was a considerable increase in inflows related to other products. Products outside the Bitcoin Trust accounted for 31% of the total inflows reported in Q3 2020.

The number of investors who bought more than one of the company’s products had also increased. Since Grayscale’s inception, around 37% of investors have allocated funds to different investment products. In the third quarter of 2020, this number increased to 57%.

The total Assets under Management increased to $5.9 billion after accounting for the exemplary third-quarter results. On a year-over-year basis, the increase in these assets is around $200%, given that at the beginning of 2020, the total AUM stood at $2 billion.

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