Institutional investors continued to pile up Grayscale products in the fourth quarter, emphasizing the continuing urgency of exposure to Bitcoin (BTC) and Ethereum (ETH).
The total investment in Grayscale’s family family amounted to $ 3.3 billion in the last quarter of 2020, which translated into an average weekly inflow of $ 250.7 million, the digital asset manager reported on Thursday. This is a threefold increase over the third quarter, when Grayscale products raised $ 1.05 billion.
Grayscale’s Bitcoin Trust generated $ 217.1 million in average weekly inflows. The Ethereum Trust has invested an average of $ 26.3 million in new capital.
Ninety-three percent of new investments come from institutional investors, with asset managers making up the largest share, according to Grayscale. This is an increase of nine percentage points compared to the third quarter when institutions accounted for 84% of the new capital.
Throughout 2020, investments in Grayscale products amounted to $ 5.7 billion. This is more than four times the cumulative inflow between 2013 and 2019.
The Gray Scale data reflects 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. That narrative helped drive Bitcoin to a price of nearly $ 42,000 in early January, after more than doubling in just three weeks.
According to Goldman Sachs CEO Goldman Sachs, Bitcoin has put the institutional institutional acceptance of the asset on the path to maturity. However, he acknowledged that Bitcoin still has a long way to go before it can be considered an institutional asset.
The bull market may get a boost in the coming weeks as the incoming Biden administration prepares a billion-dollar stimulus program. The significant devaluation of the US dollar is pushing more investors into Bitcoin.
Grayscale did not immediately respond to a request for comment