Grayscale Says Institutions Invested Record $900M in Crypto Products in Q2

Two consecutive record quarters for Grayscale mean cumulative capital inflows have doubled in the past six months to $2.6 billion.

Jul 15, 2020 at 1:00 p.m. UTC
Updated Sep 14, 2021 at 9:31 a.m. UTC

Grayscale has reported its best quarter ever after it raised a total of $906 million for its crypto products in Q2 2020.

  • The New York-based fund provider reported two consecutive record quarters Wednesday, with more than $400 million increase in capital inflows quarter-on-quarter.
  • Grayscale raised $500 million in Q1 2020 – the previous record.
  • Overall, Grayscale raised $1.4 billion in the first half of this year, the first time capital crossed the billion-dollar mark in a six month time frame, it said.
  • Grayscale is part of Digital Currency Group, CoinDesk's parent company.
  • The firm creates single asset funds that allow investors to gain exposure to cryptocurrencies in a regulated asset-class.
  • This week's results mean total cumulative inflows into Grayscale's products since inception has more than doubled to $2.6 billion.
  • The vast majority of commits (85%) came from institutional investors in H1 2020; Grayscale said most have started diversifying away from just bitcoin.
  • Total capital inflows into altcoin products increased 35% quarter over quarter; it's up nearly 650% over the 12-month period.
  • Inflows into the Ethereum Trust made up 15% across the whole product range in Q2 2020: an all-time high.
  • Bitcoin trust inflows came to $751 million in the same quarter; Grayscale successfully registered it with the Securities and Exchange Commission (SEC) in January.

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