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- Grayscale’s Bitcoin Trust adds another 2,172 BTC on the first day open for new investment in 2021.
- Grayscale received $3.3 billion in total investments for its products in the last quarter of 2020.
The Grayscale Bitcoin Trust (GBTC) has become the most important financial product for measuring institutional adoption. High demand has led Grayscale into a “buying frenzy”, absorbing an enormous amount of BTC’s supply. That trend looks set to continue in 2021.
Data shared by the asset management firm reveals that on its first day open to new investors, Grayscale has added 2,172 BTC to the GBTC. This represents 2.41 times the Bitcoin mined in the last 48 hours.
After a break since the 24th of December, @Grayscale ’s bitcoin trust is as of yesterday open to new investment.
In their first day back they added 2,172 #Bitcoin, which equals 2,41X of bitcoin mined.🚀
Great to have you back @BarrySilbert @Sonnenshein &co. 🧑🚀
Cope @eToro 😉 pic.twitter.com/1CwG2mjefn— Frans (@Frans185) January 14, 2021
Grayscale breaks investment records as Bitcoin Fund grows
In comparison, the Bitcoin Trust added up to 12,319 BTC during December in just one day, while the average daily purchases were at 1,500 BTC. Currently, the GBTC has $20 billion of the firm’s $24.7 billion in total assets under management (AUM), with each share of the Trust trading at $40.37.
01/13/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $24.7 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/EuBwQLjFXV
— Grayscale (@Grayscale) January 13, 2021
According to the latest investment report for Q4, 2020, the firm’s products have received a total of $3.3 billion. The average weekly investment has been $250 million, with the Bitcoin Trust receiving the largest investment in that period with an average of $217 million. In contrast, Ethereum’s Trust (GETH) received $26.3 million in the same period.
Moreover, 93% of investors in Grayscale’s products are institutions, mostly asset managers. This figure and the number of funds allocated to the GBTC indicate the FOMO among institutions to gain exposure to Bitcoin. On institutional involvement, Grayscale stated in the Q4 report:
Grayscale experienced unprecedented investor demand, with approximately $3.3 billion of inflows. Investment into the Grayscale family of products surpassed $5.7 billion during 2020, more than four times the $1.2 billion cumulative inflow into the products from 2013-2019. Since inception, the Grayscale family of products has seen nearly $6.9 billion of inflows.
Grayscale confirms that the institutions are here. pic.twitter.com/zdW9v7Eis4
— Jameson Lopp (@lopp) January 14, 2021
As a bonus, the firm reported one of the fastest growth in investment products in the world. At the beginning of 2020, Grayscale’s total assets under management stood at $2.2 billion and closed the year at $20.2 billion, as mentioned above. The firm attributes this growth to the maturity of the crypto market and its ecosystem. In that regard, Grayscale said:
This may not come as a surprise given the recent flurry of news that institutions have warmed up to Bitcoin. Indeed, Grayscale Bitcoin Trust accounted for 87% of all inflows to our product family, the highest proportion since 2Q17, further evidence of institutions looking to Bitcoin as a reserve asset. The average commitment among institutions is also growing at a significant pace.
