Grayscale Says Q3 Saw Record High Inflows, Institutional Interest Grows

The digital asset management giant Grayscale Investments managed to register over $254 million in total investments in its products in the third quarter of 2019, the latest crypto news show.

The Digital Asset Investment Report for Q3 2019 features Grayscale and its full report, in which the major asset management firm provided details on the inflows into its products from July 1, 2019 through September 30, 2019.

The third quarter of the year, as the report shows, is what marked the highest demand for the company’s offerings since its establishment. This resulted in a total of $254.9 million of inflows. As the figures show, this is a threefold quarter-on-quarter increase, going from $84.8 million since last quarter.

On top of this, the quarterly inflows into Grayscale Bitcoin Trust amounted to a total of $171.1 million, while July was the month with the highest level of inflows in the Q3 of 2019. The Grayscale Bitcoin trust outperformed the indices in the first half of 2019 and saw an increase of up to 300% at the time.

As the reports from Grayscale show, the institutional investors were the major contributors to the company’s products in Q3 as well as the year-to-date increase. They accounted for 84% and 83%, respectively. Worth noting is the fact that the total investments into Grayscale products from January 1 to September 30 in 2019 amounted to $382.3 million. The figure over the past months is $412.3 million, respectively.

“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, when are they going to start investing, and it’s so funny because it’s ironic. We see institutional investors invest with us all the time and that’s been the case for a long time now,” said Rayhaneh Sharif-Askary, the director of sales and business development at Grayscale.

For those of you who did not follow our cryptocurrency regulation news, on October 14 Grayscale was approved by the United States Financial Industry Regulatory Authority (FINRA) to publicly quote its Grayscale Digital Large Cap Fund on over-the-counter markets.

In August this year, many sites reported about Grayscale going to move almost $3 billion worth of its digital currency holdings to the American major crypto exchange Coinbase.