Grayscale Investments has already made a name for itself in the crypto-market and is the number one contact point for many institutional investors when they want to invest in cryptocurrencies such as Bitcoin (BTC). After the CEO announced several weeks ago that the figures for the second quarter would be even more impressive than those for the first quarter, the latest report has now been published.
Grayscale Bitcoin Trust remains the most popular
Barry Silbert is the founder and CEO of Digital Currency Group, the parent company of Grayscale Investments. He announced in May that the second quarter results would again exceed and impress those of the first months. Now, in a recent report for investors yesterday, the Q2 2020 figures were presented.
The company invested a total of $905.8 million USD in nine different crypto trusts in April, May and June. The majority of these fall into the so-called Grayscale Bitcoin Trust, into which $57.8 million USD were paid weekly in the second quarter alone. In second place is the Grayscale Ethereum Trust with $10.4 million USD. The weekly investment of all products increased to almost $70 million USD.
84% of the investments made in the second quarter came from institutional investors. Hedge fund managers account for the majority of these. Grayscale Investments now manages more than $4 billion in assets through the increase in investments.
Grayscale Investments: Interest in alternatives is growing
However, the high popularity of the Bitcoin Trust does not mean that the remaining trusts are stagnating. Quite the contrary. As Grayscale announces in its quarterly report, alternative trusts are enjoying increasing popularity. The Ethereum Trust has seen more investments than ever before, with a share of 15%. The Grayscale Litecoin Trust has also seen the largest inflow to date.
The following chart shows all the trusts in the company. As can be seen, Bitcoin and Ethereum account for a significant share of the total assets under management. However, with the increasing popularity of alternative trusts, this distribution could change in the future.