[2020-10-16] Grayscale Secures More Than $1 Billion in New Investments in Q3

[S3cco]

Grayscale Investments Secures More Than $1 Billion in New Investments in Q3
https://bitcoingarden.org/grayscale-investments-secures-more-than-1-billion-in-new-investments-in-q3/

Grayscale Investments®, the world’s largest digital currency asset manager, today released its 3Q20 Grayscale Digital Asset Investment Report, a comprehensive report that highlights investment activity across the Grayscale family of products.

During the third quarter of 2020, Grayscale raised $1.05 billion into its investment products, marking the largest capital inflow in a single quarter in the firm’s history. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019.

Grayscale® Bitcoin Trust continued to lead investment demand, with inflows of $719.3 million in 3Q20. The Trust’s AUM has grown 147% YTD, making it one of the fastest growing investment products.

Demand for other Grayscale products grew significantly in the third quarter as well, with investment into products excluding Grayscale Bitcoin Trust accounting for 31% of inflows during 3Q20. Among alternative products, the most notable increase in appetite has emerged for Grayscale® Bitcoin Cash Trust, Grayscale® Litecoin Trust, and Grayscale® Digital Large Cap Fund. On average, the aforementioned products saw inflows increase by more than 1,400% quarter-over-quarter....

[cr1776]

This news is great for bitcoin and Grayscale and demonstrates the importance of bitcoin in asset allocations.

However, it should be noted that the US SEC is doing a disservice to the citizens of the US (and world) by preventing bitcoin ETFs.  Grayscale (GBTC) is fine for what it is, but has traded at a premium to the underlying fiat price of BTC whereas an ETF would help narrow the spread, or perhaps more likely, set the price of bitcoin since it would trade with significant volume.

I hope Grayscale keeps growing, but competition either with ETFs or similar vehicles to GBTC would be very beneficial.