Grayscale’s Record-Breaking Q3 2019: Institutional Investors Flock to Digital Assets

Q3 2019 Performance: A New High for Grayscale

In a stunning turn of events, Grayscale, the leader in digital asset management, made headlines with over $254 million in investments during the third quarter of 2019. This whopping figure, which comes from their Digital Asset Investment Report, reflects a resounding demand for their offerings, marking the highest inflow the company has seen since its inception.

To put this in perspective, Q3 2019 saw a staggering threefold increase compared to the previous quarter, where investments had only reached $84.8 million. Talk about a comeback!

Bitcoin Trust: The Star of the Show

Among the various options Grayscale provides, the Grayscale Bitcoin Trust (GBTC) stood out with $171.1 million in inflows. July alone accounted for the largest share of these investments, buoyed by Bitcoin’s stellar performance, which had soared nearly 300% in the first half of 2019. It seems investors were eager to get in on the action!

Institutional Investors: The Driving Force

Now, who exactly is fueling this investment frenzy? The answer: institutional investors. Holding a massive 84% of the investments in Q3, these savvy players dominated the scene, contributing significantly to the larger $382.3 million in total investments from January to September of that year. Forget about the whispers of skepticism; these heavyweights are here and they mean business.

Words from the Experts

Rayhaneh Sharif-Askary, Grayscale’s director of sales and business development, shed light on the evolving narrative about institutional investments. She remarked:

“You know, it’s really funny, I get asked this a lot — there’s this rhetoric in the media about when are institutional investors going to get involved… it’s so funny because we see institutional investors invest with us all the time.”

Sarcasm aside, it’s clear that Grayscale has established a foothold in the investment community, and that’s no laughing matter!

Looking Ahead: Grayscale’s Expansion Plans

As if that wasn’t impressive enough, Grayscale made further waves on October 14, obtaining approval from the U.S. Financial Industry Regulatory Authority (FINRA) to publicly quote its Grayscale Digital Large Cap Fund on over-the-counter markets. This monumental step allows them to offer the first publicly quoted security based on a selection of digital currencies in the U.S., proving they are serious players in the market.

In addition, a recent report revealed plans to move nearly $3 billion in digital currency holdings to Coinbase, a major cryptocurrency exchange. Coinbase Custody will act as the custodian for these assets, aligning Grayscale even closer with the top players in the crypto field. Watch out, world!