#DropGold Campaign Effective as Grayscale Announces Record-Breaking Q3

Digital asset management company, Grayscale Investments published its Q3 report on Tuesday revealing inflows to support the theory that there is a growing investor appetite for cryptocurrency-backed products.

As per the report, Grayscale’s investment products in Q3 attracted a $254.9 million inflow, marking the highest in the company’s record for a single quarter, and representing an over 200% increase on Q3 2018 inflow which stood at $84.8 million.

Commenting on the factors that contributed to the record-breaking quarter, managing director, Michael Sonnenshein told Yahoo Finance, that the company’s DropGold campaign which launched in May and the team’s one-one approach to meeting potential investors as crucial elements.

The DropGold campaign focused on encouraging investors to ditch the precious metal for the arguably more convenient asset, Bitcoin.

Grayscale Bitcoin Trust Dominates

As one would expect, the Grayscale Bitcoin Trust was the leading investment product offered by the company in Q3. The company wrote:

We saw the heaviest quarterly inflows to Grayscale Bitcoin Trust in the product’s six-year history, including nearly $75 million in a single day. July inflows also reached the highest level we’ve seen in a single month, well above the previous high of $64.7 million raised in December 2017.

Interestingly too, the report spotted increased investor interest in altcoins, especially Ethereum and Ethereum Classic. 

Since the turn of the year, the company’s Ethereum Trust and Ethereum Classic Trust have attracted $77 million and $24.9 million, respectively, with inflows recorded each week if other altcoin-related products offered by the company are put into perspective.

Institutional Interest Spikes

Coinbase CEO Brian Armstrong recently stated that institutional investors massively invest in the crypto industry weekly, a fact the latest Grayscale report has substantially backed

Eighty-four percent of the $254.9 million which Grayscale brought in during Q3 reportedly came from institutional investors, dominated by hedge funds. As per Michael Sonnenshein, the company counts funds within the $10 billion to $15 billion range as their clients.