Grayscale report shows institutions dominate BTC investments

19 Feb, 2019 | Updated: 19 Feb, 2019
by Richard Allen
Grayscale report shows institutions dominate BTC investments

The annual report published by New York-based digital asset management firm Grayscale Investments reveals an increase in Bitcoin investment despite the longest crypto bear market ever.

According to the data, the company attracted $30.1 million in investment, with an average weekly investment of $2.3 million. Total investment into all Grayscale products in 2018 was $359.5 million. Despite an average quarter, Grayscale’s 2018 investment was nearly three times higher than in 2017, and nearly twice as much as the previous four years combined, showing long term investors remain bullish.

It’s worth noting that Bitcoin received the most investment. In the fourth quarter, 88% of inflows were into the Grayscale Bitcoin Trust. Just 12% were into products tied to other digital assets. The Bitcoin Trust received an average investment of $2 million a week. By comparison, just $300,000 flowed into “Non-Bitcoin” investment products.

Read more: "Bitcoin is 50% undervalued," says Brian Kelly

The report also details that 66% of all investment received for the full year of 2018 came from institutional investors. Retirement accounts comprised 40% of total demand for Grayscale products in Q4.

“These datapoints reinforce two important trends that we’re observing. First, the average investor at this stage of the bear market is patient with a multi-year investment horizon (i.e., investing for retirement). Second, institutional investors are building core strategic positions in digital assets over time and have largely viewed the 2018 drawdown as an attractive entry point.”

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Read more about: Bitcoin (BTC)

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