- Grayscale Investments reports record investments despite the bearish market.
- The majority of capital inflows came from institutional players.
Meanwhile, Grayscale Investments, a New-York-based a provider of cryptocurrency investment solutions, published its investment report for 2018, saying that it raised over $390 million in the reporting period.
Despite a strong bear market, the investors’ interest did not wane as the company’s figures tippled as compared to 2017. Moreover, Grayscale reports, that the majority of the investments (66%) came from institutional players, which support s the view of gradual institutional adoption.
“These datapoints reinforce two important trends that we’re observing. First, the average investor at this stage of the bear market is patient with a multiyear investment horizon (i.e., investing for retirement). Second, institutional investors are building core strategic positions in digital assets over time and have largely viewed the 2018 drawdown as an attractive entry point,” the company commented.
Meanwhile, the total value of assets under management decreased significantly due to the collapse of the cryptocurrency market. However, the company believes that brutal price decreases are nothing new to the investors that came to the industry several years ago. Thus, Bitcoin lost 85% of its value since December 2013 to January 2015 only to catapult to a new record high close to $20,000 by December 2017.
“Despite a slowdown in investment across products in the fourth quarter, we continue to see evidence that digital assets are here to stay as a new asset class. Moreover, we believe in a future where multiple digital assets survive, thrive, and complement one another in the digital economy, allowing them to play a diversifying role within investor portfolios,” Grayscale says in the report.
As for the asset allocation trends, Bitcoin continued to be the digital currency of choice for Grayscale investors. Grayscale Bitcoin Trust attracted 88% of all capital inflows in the fourth quarter and accounted for $242 million the capital raised from Grayscale investors throughout 2018.
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