Grayscale investments’ financial report revealed that Capital Institutional investors add the largest share of capital inflow into the cryptocurrency space.
The investment firm was launched in 2013 as an authority committed to overseeing investments into cryptocurrency. The firm is headquartered in New York and has proven to be one of the largest digital currency firms holding 248 million dollars’ worth of digital financial products.
The institutions mission is clearly summarized on the official webpage stating that,
“Digital currencies are poised to radically transform our financial system, but it won’t happen overnight. At Grayscale Investments, we believe investors deserve an established, trusted, and accountable partner that can help them navigate the gray areas of digital currency investing. That’s why we are building transparent, familiar investment products that facilitate access to this burgeoning asset class, and provide the springboard to invest in the new digital currency-powered internet of money’’
The authority began by establishing a Bitcoin Investment Trust in 2013 and then later-on expanded its scope to a number of single asset funds which include Etherium classic, Zcash and Litecoin.
The recent report revealed that out of all the new investments into the Grayscale products, 56 per cent came from institutional capital investments. As of the general investment trend since the beginning of this year, Greyscale revealed that there has been an influx of capital despite the bearish trend that has recently plagued the cryptocurrency market. This was demonstrated in the investment company’s remarks which said,
“As the investment community knows, over the last six months, the digital asset market experienced one of the largest price drawdowns since the inception of Bitcoin in 2009. However, what is more interesting, and somewhat counterintuitive, is that the pace of investment into Grayscale products has accelerated to a level that we have not seen before.”
By June 30, the total investment had hit a colossal figure of 248.4 million to set a record high since the initial establishment back in 2014. Additionally, Greyscale revealed that there has been a weekly 9.55 million of capital flowing in of which 63 percent was allocated to the Bitcoin Investment Trust.
Apart from the institutional investors whose capital constitutes most of the investment fund, further breakdown reveals that accredited individuals make up 20 percent whereas retirement and family offices account for 16 percent and 8 percent respectively.
The report also highlighted the average investment sums which showed $848,000 for institutions, followed by family offices at $553,000, retirement accounts at $335,000 and $89,000 for individual investors.
A careful consideration of the report suggests that key investors took advantage of 2018’s bearish trend to ”buy the dip” just as the infrastructure to support institutional entry is materializing.
This revelation is consistent with the news we came across earlier this week where Black Rock, the world’s largest provider of ETF, has also joined the band wagon to assess its involvement in Bitcoin. This could also be a huge indicator that the current ever-increasing inflow of capital is nowhere close to receding.
