Grayscale Says It Raised a Record $500M in First Quarter

The crypto investment firm says it raised almost as much in Q1 2020 as it did over the whole of 2019.

AccessTimeIconApr 16, 2020 at 1:03 p.m. UTC
Updated May 9, 2023 at 3:07 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

In a record first quarter, Grayscale reports many institutional investors took advantage of market turbulence to increase their exposure to cryptocurrencies.

The crypto-focused investment firm raised a total of $503.7 million in Q1 2020, nearly double the previous quarterly high of $254.8 million reached in Q3 2019. While bitcoin-weighted trusts continue to be the company's most popular product, the report noted that ether trusts also received record inflows in the same quarter as investors added multiple Grayscale products to their portfolios.

The firm, a unit of New York-based Digital Currency Group, CoinDesk's parent company, raised about $600 million across the whole of 2019. With Thursday's report showing the company raising more than $500 million in Q1, it's likely 2020 inflows will exceed the year before.

Grayscale also reported inflows surpassed $1 billion over a 12-month period, the company's first billion-dollar year. This takes the total value of Grayscale's assets under management (AUM) to $2.2 billion.

The lion's share of demand came from institutional investors, who made up 88 percent of total investments in the quarter. Digging deeper, Grayscale said the overwhelming majority of these institutional clients were hedge funds.

Grayscale said clients had seized the opportunity of increased volatility over the quarter to increase their exposure to its products, particularly when crypto prices have sharply declined. The evidence suggests that even in a risk-off climate, investors "are increasing their digital asset exposure at current levels," the report reads.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.