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27 November 2021
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Grayscale Q2 Report: Best Quarter to Date as Grayscale sees $900 Million Inflow

The digital asset management company published the second-quarter report, which shows the company has received more than $900 million in investments from institutional investors.

Q2 Performed Better as Compared to Q1

Today, Grayscale rolled out its comprehensive Q2 2020 report of investment results. As compared to the previous quarter, the company has collected $400 million more investment on the part of investors. In Q1, the firm received $503.7 million, but in the second quarter, the figure surged to $905.8 million.

Since the start of 2020, “inflows into Grayscale products over a 6-month period crossed the $1billion threshold, demonstrating sustained demand for digital asset exposure despite a backdrop characterized by economic uncertainty.”

It is also revealed that more new investors have attracted to the company in Q2 of 2020 as 57% out of all are new ones who are impressed by the great potential of digital assets.

Investors’ Interest in Digital Assets other than BTC and Eth

Besides two major products-Bitcoin and Ethereum Trusts- on the platform, the new investors also seek other digital assets trusts including the Grayscale Bitcoin Cash Trust, Grayscale Ethereum Classic Trust, and the Grayscale Litecoin Trust.

Out of total investments inflow, Bitcoin makes $751,1 million while Ethereum counts only $135.2 million.

The recently circulated news about the purchasing of BTC more than its newly mined supply also confirmed by Grayscale’s report. This is because the new supply has been reduced to an unprecedented limit after the halving as rewards plummeted to 6.25 BTC only.

“After Bitcoin’s halving in May, 2Q20 inflows into Grayscale Bitcoin Trust surpassed the number of newly-mined Bitcoin over the same period. With so much inflow to Grayscale Bitcoin Trust relative to new-mined Bitcoin, there is a significant reduction in supply-side pressure, which may be a positive sign for Bitcoin price appreciation.”

The number of institutional investors has been increased in the second quarter:

“The majority of investment continued to come from institutional investors, accounting for 84% of investment in 2Q20. Additionally, as more investors continue to broaden their digital asset exposure, with 81% of returning institutional investors in 2Q20 allocating to multiple products, Grayscale continues to broaden its investor base.”g

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