The cryptocurrency manager started 2020 overseeing $2 billion in assets.
In a report, Grayscale said it saw record investor demand in the fourth quarter, with approximately $3.3 billion in inflows. Investments into the Grayscale products surpassed $5.7 billion during 2020, more than four times the $1.2 billion cumulative inflow from 2013-2019.
Also helping Grayscale’s cause was a sky-rocketing bitcoin, which hit an all-time peak of $42,000 last week. Bitcoin was last up 6.4% at $39,748. In 2020, bitcoin soared more than 300%.
“The monetary and fiscal measures by governments globally served as the catalyst for the surge of interest in bitcoin,” the crypto fund manager said in the report. “As monetary inflation became a pressing concern, institutional investors took action by allocating to bitcoin.”
Grayscale’s bitcoin-focused flagship product — Grayscale Bitcoin Trust — ended the 2020 with assets of $17.5 billion, from $1.8 billion at the beginning of the year.
Institutions have historically accounted for the majority of Grayscale’s inflows and this was particularly true in the fourth quarter. Institutions accounted for 93% of capital inflows, or $3.0 billion, Grayscale said.
Source: Cryptocurrency - investing.com
