Digital Currency Investment Company Grayscale Investments has released its Q3 report for 2018. The report highlights that institutional investors have made most of the fund deposits in the last three months. This strongly indicates that institutional investors are expecting a bull run in the near future and are slowly stocking up on Bitcoin and Co.
Grayscale Investments offers institutions and accredited investors the opportunity to invest in digital assets through a regulated investment process. Currently Grayscale offers a single portfolio including BTC (Bitcoin), BCH (Bitcoin Cash), LTC (Litecoin), ETH (Ethereum), ETC (Ethereum Classic), XRP (Ripple), ZEN (ZenCash) and ZEC (Zcash) a Digital Asset Large Cap Fund investing in a portfolio of BTC, LTC, XRP, ETH and BCH.
New money is finally coming to the market
The Q3 report shows that $ 81.1 million has gone to Grayscale’s digital currency funds, of which 70% comes from institutional investors. Since the beginning of the year, $ 329.5 million has gone into Grayscale’s digital investment products, 59% of which was from institutional investors.
These data indicate that financial institutions are increasingly interested in investing in Bitcoin and other digital assets, but through a regulated investment vehicle.
Grayscale offers eight single-asset funds and a diversified digital asset fund. Most of the inflows went to the Bitcoin Investment Trust. The Altcoin funds were used much less.
Bitcoin and Ethereum Classic at the forefront
In the third quarter of 2018, 73 percent of the investments went to the Bitcoin Investment Trust; since the beginning of the year, this value was 66 percent. The majority of investors still prefer to invest in the world’s largest and most popular digital currency – Bitcoin. The riskier Altcoinmarkt seems less interesting for investors
The second most popular fund was the Ethereum Classic Trust, which was founded in April 2017. The recently launched ZEN Investment Trust was the third largest fund after Bitcoin and Ethereum Classic in the third quarter of 2017.
Approximately the same number of new funds went to XRP, BCH, ZEC and Grayscale’s diversified Digital Asset Fund in the last quarter, while interest in Litecoin and Ethereum has been minimal.
Who exactly invested?
Interestingly, Grayscale’s quarterly report also provides insight into the investors’ background. As noted earlier, institutional investors are the largest investor segment in the third quarter of 2018 and see Bitcoin at the top of digital currencies.
Surprisingly, the second largest investor group is retirement accounts, which have also diversified into digital currencies – about 18%.
Accredited investors, i. wealthy individuals were 11% in the third quarter of 2018. Finally, one percent of inflows came from family offices.
Most of the money came from US investors (64%), while 34% came from offshore investors. Finally, “other investors” contributed 2% of the inflow into Grayscale’s funds.
image by shutterstock