Grayscale’s products hit $250.7 million in the fourth quarter by capping off a stellar year for the asset manager.
It has been reported by digital-asset manager that total investments into Grayscale’s family of products reached $3.3 billion in the final quarter of 2020, which translated into average weekly inflows of $250.7 million.
However, that’s a threefold increase from the third quarter when Grayscale products raked in $1.05 billion.
The report said that Grayscale’s Bitcoin Trust generated $217.1 million in average weekly inflows. The Ethereum Trust saw an average of $26.3 million in new capital invested.
According to Grayscale, ninety-three percent of new investments came from institutional investors, with asset managers accounting for the largest share. That’s a nine percentage point increase from the third quarter when institutions accounted for 84% of new capital. In all of 2020, investments into Grayscale products totaled $5.7 billion. That’s more than four times the cumulative inflow between 2013 and 2019.
Grayscale’s data reflect a turning point for Bitcoin in 2020, as smart-money investors began to view the digital asset as an inflationary hedge and long-term store of value. That narrative helped propel Bitcoin to a price of nearly $42,000 in early January after more than doubling in just three weeks.
Jeff Currie, the executive at Goldman Sachs, said that institutional adoption of Bitcoin has put the asset on a path to maturity.
Thus, he acknowledged that Bitcoin still has a long way to go before it’s considered an institutional-grade asset.