Cryptocurrency-crazy hedge funds – Institutional investors invested $ 2.7 billion in this giant fund in 2020
More Cryptos – Cryptocurrency investment funds managed by the Grayscale company have been breaking record after record since the start of this year. In its latest quarterly report, Grayscale shows that institutional investors continue to position themselves exponentially in major crypto-assets.
$ 1 billion invested in cryptos in just 3 months
Fund manager Grayscale buys cryptocurrencies as an underlying to its investment products, with its clients then buying shares in those funds.
As storage remains the responsibility of Grayscale, institutional investors seem very fond of this mode of acquiring crypto-assets. This is in any case what confirms, once again, the last activity report of Grayscale, for its third quarter of 2020 .
Over one year, since the end of September 2019, the company’s crypto-assets under management have increased from a total of 2 to 5.9 billion dollars , an increase of about 195% . In the last quarter alone, Grayscale added $ 1.05 billion worth of cryptos to its reserves.
Cumulative value (in millions of dollars) of all crypto-assets under Grayscale’s management
Unsurprisingly, the most popular fund for investors is the Grayscale Bitcoin Trust , with an average of $ 55.3 million invested each week in the third quarter (nearly $ 720 million over 3 months).
After BTC, ethers (ETH) are the most in demand: the Grayscale Ethereum Trust has seen an average of $ 15.6 million in weekly investments.
2% of all existing ethers to satisfy institutional appetites
With the new investments this quarter, Grayscale now has under its management 2% of all ethers mined to date.
As can be seen from the graph below, institutional investors are by far the biggest leaders of these crypto-investments. It thus represents 81% of the sums invested during the third quarter and 80% over the last 12 months.
Percentage of total sums invested by type of investor
Grayscale notices that their clients are gradually seeking to diversify their crypto-assets . Indeed, in addition to the success of Ethereum, the Digital Large Cap fund – which concerns a basket of 5 cryptos – and the funds dedicated to Litecoin (LTC) and Bitcoin cash (BCH) have experienced very strong growth in the last quarter. .
In more detail, the Grayscale Litecoin Trust saw $ 27.2 million over 3 months, an increase of 1,800% compared to the second quarter. For Bitcoin Cash Trust , the quarterly increase is 1,500% and it is 900% for Digital Large Cap .
Investments per quarter in the various funds of Grayscale
The movement to buy crypto-assets by institutions is growing impressively. Even so, it’s normal to wonder when these massive investments are going to impact crypto prices. At such a rate, one would be tempted to say soon.