Grayscale Investment has published its third-quarter report for this year. The report highlights that institutional investors have made up the majority of its fund inflows in over the past three months. This suggests that smart money might be buying into cryptocurrencies in anticipation of an upcoming rally.
Grayscale Investment provides investments trusts that hold digital currencies and therefore enables institutions and accredited investors to invest in digital assets through a regulated investment vehicle. Grayscale is currently offering a single asset exposure to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic, XRP, Zcash and ZEN which runs a digital asset large-cap fund that invests in a portfolio of composed of Bitcoin, XRP, Litecoin, Ethereum, Bitcoin Cash.
The Grayscale Digital Asset Investment third-quarter report shows that over $80 million has flown into Grayscale’s digital currency trusts of which 70% came from institutional investors. To date, just under $330 million of new funds have gone through Grayscale’s investment products with a total of 59% coming from institutional investors.
With this data, it is suggested that financial organisation are quickly opening up to the idea of investing in Bitcoin and other digital assets despite it being through a regulated investment body. The data also indicates that institutional investors who are brave enough to venture into the digital asset investing are buying Bitcoin and other cryptos are now in anticipation of a rally in the near future.
What is actually being bought?
There are eight single asset funds and one diversified digital asset fund that is being offered by Grayscale. Nevertheless, the majority of inflows have been into the Bitcoin Investment Trust as opposed to the companies range of altcoin funds.
As reported by BTC Manager:
“In the third quarter of 2018, 73 percent of new inflows went into the Bitcoin Investment Trust; Year-to-date that figure stood at 66 percent. This suggests that the majority of investors still prefer to invest in the world’s largest and most popular digital currency as opposed to its higher-risk peers from the altcoin market.”
An equal number of new funds went to Bitcoin Cash, XRP and Zcash and Grayscale’s diversified digital asset fund in the last quarter while Ethereum and Litecoin didn’t receive a lot of interest from investors.
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