Institutionalization, i.e. the interest of institutional investors in Bitcoin and Co., has long been considered a hot candidate for one of the decisive triggers of a possible next bull run. The hope is that while the price explosion in 2017 was caused by demand from private investors, next time institutional investors should generate additional demand and catapult the Bitcoin price to new heights.
In 2020, reports from insiders like Mike Novogratz and the numbers from companies like Grayscale show that this development is in full swing. In a new report, it is now clear how massive the sums are that are invested in Bitcoin and Co. These numbers give hope for great things. In this article we summarize some important points from the report. Have lots of fun with it!
Record Grayscale totals in the first half of the year
In its latest " Digital Asset Investment Report " for the second quarter of 2020, the crypto company Grayscale presents new figures and provides insights into how much capital went into the company's investment products for Bitcoin and Co. in the first half of 2020.
According to the Digital Asset Manager, a total of USD 905.8 million flowed into their products such as the Grayscale Bitcoin Trust in the second quarter of 2020. In addition to the capital raised in the first quarter, the total for the first half of 2020 is an incredible $ 1,400,000,000. This is the first time that the $ 1 billion mark has been exceeded within 6 months.
For the first time, the inflows into Grayscale products exceeded the $ 1 billion mark over a 6-month period, demonstrating continued demand for digital assets despite a background of economic uncertainty.
According to the report, as many as 84% ??of the investors were institutional investors, mainly hedge funds. Of the returning investors, 81% have invested in multiple products.
Bitcoin Trust still clearly at the top
According to the company, the Grayscale Bitcoin Trust remains clearly at the forefront of products with inflows of $ 751.1 million in the second quarter of 2020. These numbers represent the fourth quarter in a row for the fourth consecutive quarter.
It is also interesting that after the Bitcoin Halving in May, the inflows into the Grayscale Bitcoin Trust exceeded the newly mined BTC for the first time.
Despite the continued clear dominance of the Bitcoin Trust, the company's other products also gained momentum. For example, $ 135.2 million was invested in the Grayscale Ethereum Trust in the second quarter, which corresponds to 15% of the total. The Grayscale Litecoin Trust also beat its investment records, and the Grayscale Bitcoin Cash Trust saw its largest inflow since the second quarter of 2018.
