Grayscale report shows institutional Bitcoin investment is increasing

posted 12 months ago
Grayscale released its Digital Asset Investment Report for Q2 of 2019. The company’s assets under management nearly tripled from $926 million to $2.7 billion. The cause of this is the resurgence of the cryptocurrency market which boomed in 2019. Per the report, the quarterly returns for industry benchmark products, namely the Grayscale Bitcoin Trust and the Grayscale Digital Large Cap Fund were 178.8% and 147.6% respectively.

Perhaps the most interesting bit of the report is the fact that the highest percentage of total demand for Grayscale’s products came from institutional investors. In the second quarter of 2019, they comprised 84% of the total demand, providing a clear sign that big players are already interested in the field. Notably, institutions are happy to pay a 36% premium in order to receive exposure to BTC’s price instead of buying Bitcoin directly and having to store and manage it.
Tags: bitcoin, news