Institutional Investment Cryptocurrency company, Grayscale, has reported its best ever quarter in Q2 of this year as it managed to raise $906 million for its cryptocurrency products in Q2. The company has been at the forefront of institutional interest in Bitcoin investing, but its work in 2020 has shown big increases.
This new record setting quarter is being reported as the second consecutive record breaker as it managed to again clear a $400 million increase in capital inflows quarter-on-quarter. The previous record, set in Q1 of this year was $500 million indicating a major jump. Overall, Grayscale raised $1.4 billion in H1 2020 – the first time capital crossed the billion-dollar mark in a six month time frame, it said.
Greyscale was also in the news earlier this year when the firm started buying up much of the freshly minted Bitcoin following its third halving event. In fact, Grayscale bought approximately 6,300 Bitcoin more than what was mined 17 days after the halving. The Grayscale Bitcoin Trust bought 18,910 Bitcoins since May 11th. However, only 12,337 Bitcoin had been mined since the halving.
This indicates a massive drive from the trust to ensure supply, but equally, it has indicated that there is major interest from its investors as they continue to look for alternative investments in this tricky financial time.
This week’s results mean total cumulative inflows into Grayscale’s products since inception has more than doubled to $2.6 billion. The vast majority of commits (85%) came from institutional investors in H1 2020; Grayscale said most have started diversifying away from just Bitcoin.
The company has also moved towards Ethereum where there has been some good uptake as well. Inflows into the Ethereum Trust made up 15% across the whole product range in Q2 2020: an all-time high.
Time for new money?
Many are still wondering how the impact of Covid-19 will affect the markets and market sentiment. The rebound from the likes of the NASDAQ and even assets like gold have been good, but there also seems to be a renewed interest in diversifying to anticorrelated assets.
Bitcoin;s correlation remains hard to track, and its price is very range bound, but this too could be playing into the hands of traditional investors who will see this period of stability as a good thing.