A new report from the asset management firm Grayscale Investments shows that the company’s inflows reached record highs in Q3 2019. Despite the recent crypto market decline, total investments into Grayscale products in Q3 account for almost $255M, which is an all-time high for the company for a single quarter. The majority of investments, 84%, came from institutions. According to Michael Sonnenshein, most of Grayscale institutional investors are traditional funds rather than crypto hedge funds.
Grayscale’s Q3 crypto success contributed to the annual inflow statistics substantially, as it accounts for almost 62% of the 12-month Grayscale inflow of $412.3M. The average weekly investment into all Grayscale products in Q3 was estimated at $19.6M, while the average weekly investments into Grayscale Bitcoin Trust solely were $13.2M.
As Grayscale’s managing director, Michael Sonnenshein, claims, "I actually think that we had a day where we raise over $75 million in a single day — which was the largest inflow we ever had in a single day."
Though Grayscale Bitcoin Trust remains the most popular Grayscale product with $171.7M in inflows in Q3 2019 and almost $277M year-to-date, investments into other Grayscale crypto funds are also on the rise. Grayscale products excluding the Bitcoin Trust saw inflows of over $83M in Q3, while their year-to-date inflows are over $105M.