Digital asset management firm Grayscale Investments has revealed that institutional investors and hedge funds are continuing to drive more funds into Bitcoin (BTC) and Ethereum (ETH) products, according to its Q2 2020 report. The firm recorded its largest quarterly inflow at $908.5 million.
Key highlights of the report include Grayscale’s products crossing $1 billion in investment over a 6 month time frame, the first time it has done so. Grayscale’s Bitcoin Trust was the dominant investment choice, with an average weekly investment of $57.8 million, followed by the Ethereum Trust at $10.4 million. Both the Bitcoin and Ethereum Trust experienced record quarterly inflows at $751.1 and $135.2 million respectively.
Grayscale offers several products besides these two, including investments in Bitcoin Cash (BCH), Ethereum Classic (ETC), XRP, Litecoin (LTC), Stellar Lumens (XLM) and Zcash (ZEC).
Grayscale’s Q1 report also recorded new highs from preceding quarters, which underscores the fact that greater interest is being shown by professional investors. Q2’s inflow is almost double of that of Q1, which was at $503.7 million. Grayscale noted that the majority of investments arrived from hedge funds.
Of particular note is the fact that 57% of the investor base in Q2 2020 was new investors, who had invested $124.1 million. 81% of existing institutional investors have also expanded their investments to more products.
As for these other products, the Grayscale Litecoin Trust and Grayscale Bitcoin Cash Trust together surpassed $20 million in inflow. The best performing assets in Q2 2020 were Zcash at 72%, followed by Stellar Lumens and Ethereum at 62%. Bitcoin was next at 35%.
