Crypto asset manager Grayscale Investments has raised a total of $503.7 million in the first quarter of this year, nearly doubling its previous record high of $354.8 million in Q3 2019.
The cryptocurrency-focused investment firm revealed that last month’s crypto market crash largely contributed to its record inflows as institutional investors bought the crypto market’s dip, betting on Grayscale’s Bitcoin Trust (GBTC) Ether Trust (ETHE) and other products to gain exposure to the cryptocurrency space.
In comparison Grayscale, a unit of the New York-based Digital Currency Group, raised a total of $600 million in 2019, the year that had its previous record quarter.
Q1 2020 marks Grayscale’s strongest quarter yet, with >$500 million raised … that’s 83% of total capital raised for ALL of 2019, in just ONE quarter! Read more about the demand trends we witnessed in the first quarter here:https://t.co/TFwqIcAQEA pic.twitter.com/gSUh0ACNkj— Grayscale (@GrayscaleInvest) April 16, 2020
According to the firm, inflows also surpassed #1 billion over the last 12-month period, a new record for the company. As a result, the total value of assets under management for Grayscale has now surpassed the $2.2 billion mark.
Notably, institutional investors reportedly made up 88% of the total investments in the first quarter of this year, with the majority of them being hedge funds gaining exposure to the cryptocurrency space. Over the last 12 months, 79% of investments came from institutional investors, the lion’s share being hedge funds.
Per Grayscale, evidence suggests that even in the current risk-off climate prompted by the coronavirus-induced market crash last month, investors are “increasing their digital asset exposure at current levels.” Increased volatility over the last quarter, the announcement adds, presented an opportunity for investors.
Featured image via Pixabay.