Based on a financial report released on November 1, 2018, by the Crypto Investment Firm, Grayscale, the Year-to-Date (YTD) investment into its products is $329.5 million. This is a 33% increment from the $81.1 million total investment made by its investors in the third quarter of the year.
Unarguably, this is one of a kind given the hike and fall in the price of Bitcoins as with altcoins since December 2017. The same can be said about consumer’s interest for cryptocurrency products that has declined due to these changes, but hopefully, this might no longer be the case with results like this.
Grayscale Investments, LLC is a Cryptocurrency asset developer and manager who of late, has been focusing on privacy coins for emerging markets and most especially, the U.S. It can be recalled that in early September, they launched the ZEN Investment Trust for their approved investors.
This significant increase in value shows that there is a high demand by pension funds and family offices for cryptocurrency products. Moreover, it is the highest YTD investment recorded by the New York-based firm since its inception five years ago, and it is a 1,200% increment to the $25.4 million that was raised in 2017.
According to the managing director, Michael Sonnenschein,
“These figures are evidence that interest has not dwindled as a result of prices decreasing. What we’ve witnessed is the strongest inflows we’ve ever experienced over 5 years from both existing investors and new investors”.
Based on the report, the geographical location of 64% of its investors, is the U.S, followed by offshore investors such as Cayman-domiciled entities and people living in other parts of the world. Grayscale stated that this result is in correlation with what was achieved since the year began.
Accordingly, most of the contributions were made by Institutional investors, but the dollar-value that was invested is still lower than that of the two previous quarters. In the same vein, Bitcoin had the highest capital flows by 73% and other digital assets like Ethereum Classic, Zcash, and Ethereum made 27% of the capital.
The average weekly investment into Bitcoin Investment Trust and Non-Bitcoin Investment Products were $5.5 million and $2.9 million respectively. What this means is that while Bitcoin is still king because the highest first quarterly return was recorded for Bitcoin, there is still a high demand for other digital assets such as Ripple’s XRP.
As a crypto conglomerate Digital Currency Group, Grayscale has $1.5 billion in customer assets which proves that the bear market has not deterred investors from putting in more capital. The data obtainable in their report will help new and potential investors to determine the current market prices and capital flows.