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The latest report on investment in the digital badet management fund Grayscale Investments released February 14 reveals that capital inflows by institutional investors are on the rise.
For the fourth quarter of 2018, Grayscale indicated that institutions accounted for the majority of investments – 66%. In addition, investors were almost exclusively based in the United States (99%), although the statistics for the whole year indicate a more distributed geography, with 33% foreign investors and 67% US.
In its more detailed badysis of investor profiles, Grayscale notes that the protracted bear market has attracted clients with a long-term perspective: the high percentage of retirement accounts (40%) indicates a multi-year investment horizon. In addition, while dollar investment in cryptography declined in the fourth quarter, Grayscale claims that the percentage allocation of their portfolio by institutional investors in the cryptography sector has remained broadly stable throughout 2018.
Overall, the fund notes that new inflows into cryptographic products have slowed in 2018: nonetheless, with fourth quarter investments rising to $ 30.1 million, tiered products of gray reached $ 359.5 million for the year as a whole, almost double the inflow. previous four years (2014-17) combined.
Grayscale has been overseeing investments in cryptography for over five years. In September 2013, he created a Bitcoin investment fund (BTC) and then expanded to other single badet funds, including Ethereum Clbadic (ETC), Zcash (ZEC) and Litecoin (LTC). – as well as diversified offers, such as its Digital Large Cap Fund.
Another trend identified by the report is the "return of the maximalist Bitcoin": 88% of new inflows were paid by the flagship fund of Grayscale, the BTC Investment Trust, investments in products other than Bitcoin have slowed down considerably. For the year as a whole, BTC Trust accounted for 67%, with 33% invested in other cryptographic products.
As noted, an badysis of multinational investment bank and financial services firm Morgan Stanley last fall described cryptocurrencies as a new clbad of institutional investment, highlighting the proliferation of new funds for the sector.
Nevertheless, recent data indicate a change in the composition and strategy of the funds as the winter of crypto continues: in 2018, the number of new crypto-investment funds exceeded for the first time that of new hedge funds in the space.
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