Grayscale LLC, a Global leader in cryptocurrency asset management, has released the first-ever cryptocurrency investment report and it indicates that the most of the capital inflow in 2018 is coming from institutional investors in the crypto market.
According to PR Newswire, the report notes the industry activities as well as assessing trends on crypto investment across the “Grayscale family of products” in the first half of 2018.
Grayscale is a subsidiary of Digital Currency Group which is fully owned. The group invests in over 130 Bitcoin and Blockchain Technology firms in about 30 countries all over the world.
For the past five years, Grayscale has been studying several crypto investments, from the launching of a Bitcoin (BTC) Investment Trust in September 2013 to its expansion to other single-asset funds such as Ethereum Classic (ETC), Litecoin (LTC) and Zcash (ZEC). Apart from these, Grayscale has also been involved in diversified offerings, remarkably that of its Digital Large Cap Fund.
Interestingly, institutional investors have provided 56% of all new investment dollars for Grayscale products, which is a notable rise in allocations to the digital asset class “despite a broad-based price reduction across digital currencies” in the first quarter of the year.
The report also shows that 63% of capital raised into Bitcoin Investment Trust while the remaining 37% into Grayscale products which is tied to other virtual currencies. This means that Bitcoin (BTC) is the most popular cryptocurrency for investors of Grayscale.
The total investment till June 30, 2018, was about $248.4 million, which is the most robust fund raising time ever since 2013. A weekly average of $9.55 million in fresh capital has been coming in and about $6.04 (63%) million entering the Bitcoin Investment Trust.
As indicated by Grayscale’s investor profile data, qualified entities account for 20%, that of retirement accounts being 16%, while family offices account for 8%. This is in addition to the institutional investors who take the most significant share of their portfolio.
The report also revealed that about 64% of new investments came from the U.S., 26% from external investors, and 10% from other regions.
Institutional investors have an average investment sum was $848,000, family offices have $553,000, retirement accounts with $335,000, and individuals summing $335,000. The report confirms these figures by highlighting that the said data is skewed by many “large, one-time outliers,” as well as sums that were broken up into several allocations over a succession of days.
The cryptocurrency investment report also indicates that key investors potentially consider downturn of the year as a crucial moment to invest in the crypto markets.