Grayscale now controls 1.2% of the world's crypto
Grayscale has always been a major crypto player, and they are only getting bigger
Grayscale revealed their Q1 results last week and there were some very interesting revelations.
The first being the one mentioned in the title...
In terms of Assets Under Management (AUM), Grayscale now accounts for roughly 1.2% of all the money in crypto.
Yes you read that right...
One company now has AUM of over 1% of all the value in crypto...
As you might imagine, that is the highest they have ever reported.
The second interesting revelation was that they now own close to 2% of all the bitcoin in circulation.
Again, yes you read that right, one company owns roughly 2% of the entire supply of bitcoin.
What the heck happened exactly in Q1?
Q1 was the strongest quarter Grayscale has ever reported.
According to their filing, they reported inflows of over $500 million...
“Quarter-over-quarter inflows more than doubled to $503.7 million, demonstrating demand is reaching new peak levels, even in a ‘risk-off’ environment."
For some context, Grayscale did roughly $1 billion in the trailing 12 months, and that includes the most recent quarter.
Their previous high was roughly $250 million, done in Q3 of 2019.
Interesting tidbits from the report:
- Raised $503.7 million in 1Q20, nearly double the previous quarterly high of $254.8 in 3Q19.
- New investors accounted for $160.1 million in inflows.
- Grayscale Bitcoin Trust and Grayscale Ethereum Trust both experienced record quarterly inflows of $388.9 million and $110.0 million, respectively.
This was also the first time ever that inflows crossed the $1 billion mark in a 12 month period.
(Source: https://news.bitcoin.com/investments-grayscale-bitcoin-trust/)
Why does this matter?
This matters because it tells us that a certain group of investors are continuing to pour into bitcoin...
Who do you think buys bitcoin via Grayscale?
Institutions.
Per the report, 80% of the inflows came from hedge funds.
While institutions may not be participating in mass in the spot markets, they certainly seem to be growing via their participation with Grayscale.
This is a great sign for bitcoin going forward because institutions would not be buying currently if they didn't think bitcoin had a future, or at least was going to up again.
For those saying institutions are still not participating with bitcoin all you need to do is point em to the latest Grayscale filing as evidence...
Stay informed my friends.
-Doc