Grayscale Adds $1 Billion to Crypto Products in Q3, Sees 'Unprecedented Demand' for Bitcoin Cash

Grayscale Investments has announced a record quarterly performance, raking in $1.05 billion in investments, mostly from institutional investors. The company also sees “unprecedented demand” for bitcoin cash.

Record Quarter, Over $1 Billion Added

Grayscale Investments released its third-quarter performance Wednesday. The company tweeted:

We just recorded our largest ever quarterly inflows – over $1.0 billion in 3Q20 – making it the third consecutive record-breaking quarter. YTD investment into the Grayscale family of products has surpassed $2.4 billion.

Specifically, the company revealed that the total investment into its products in 3Q 2020 was $1.05 billion, noting that the majority of investment (81%) came from institutional investors, dominated by hedge funds. In the third quarter, offshore investors accounted for 57% of new investment capital into its products.

The total investment into Grayscale’s products was $2.7 billion over the 12-month period ending Sept. 30, which was more than double the $1.2 billion cumulative inflow into the company’s products from 2013 through 2019.

Unprecedented Demand for 3 Products

Grayscale also revealed that three products have seen “unprecedented demand.” The company detailed, “Grayscale’s Bitcoin Cash, Litecoin, and Digital Large Cap [DLC] products have all seen over 10x growth in inflows quarter-over-quarter,” elaborating:

Unprecedented demand for BCH, LTC, and DLC … On average, the aforementioned products saw inflows increase by more than 1,400% quarter-over-quarter.

“These developments followed FINRA’s verification in July that the required diligence to begin quoting the bitcoin cash and litecoin products … had been completed,” the company explained.

Grayscale Investments’ total net asset under management is $6.3 billion as of Tuesday. The Grayscale Bitcoin Trust (GBTC) had the most asset under management ($5,157 million), followed by the Ethereum Trust ($867.7 million) and the Digital Large Cap Fund ($92.0 million). The company described:

Investors appear to be interested in digital assets because they have outperformed major indices YTD.

Meanwhile, the company announced on Tuesday that, like GBTC, its Ethereum Trust had attained the status of a Securities and Exchange Commission (SEC) reporting company.