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Institutional investors continued to cram into grayscale products in Q4, underscoring the continued urgency of exposure to Bitcoin (BTC) and Ethereum (ETH)
Total investments in the Grayscale family of products reached $ 3.3 billion in the last quarter of 2020, resulting in average weekly inflows of $ 250.7 million, the manager reported Thursday. digital assets. That’s three times more than in the third quarter, when grayscale products grossed $ 1.05 billion.
Grayscale’s Bitcoin Trust generated $ 217.1 million in average weekly inflows. The Ethereum Trust has seen an average of $ 26.3 million in new capital invested.
Ninety-three percent of new investment came from institutional investors, with asset managers accounting for the largest share, according to Grayscale. This represents an increase of nine percentage points from the third quarter, when institutions accounted for 84% of new capital.
In 2020, investments in grayscale products totaled $ 5.7 billion. This is more than four times the cumulative flow between 2013 and 2019.
Grayscale’s data reflects a turning point for Bitcoin in 2020, as smart money investors began to view the digital asset as an inflationary hedge and long-term store of value. This narrative helped propel Bitcoin to a price of nearly $ 42,000 in early January after more than doubling in just three weeks.
The institutional adoption of Bitcoin has put the asset on the path to maturity, according to Jeff Currie, an executive at Goldman Sachs. However, he acknowledged that Bitcoin still has a long way to go before it is considered an institutional grade asset.
The bull market could receive additional boost in the coming weeks, as the new Biden administration prepares a multibillion-dollar stimulus package. The massive devaluation of the US dollar is pushing more investors towards Bitcoin.
Grayscale did not immediately respond to a request for comment
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