More Institutional Interest in Crypto? Grayscale Raises $500M in Q1 2020

Cryptocurrency management firm, Grayscale Investments, has published a groundbreaking financial report for 2020 Q1 – a feat that saw a majority of the firm’s revenue come from institutional investors.

According to an official announcement made by the investment fund firm today, Grayscale investment products raised a massive $503.7 million in Q1 2020, an achievement that saw the firm smash its previous all-time 2019 Q3 record of $254.8 million.

The breakdown of Grayscale’s 2020 Q1 revealed that $160.1 million of the entire revenue was accrued from new investors’ patronage of the firm’s investment products, while the Grayscale Bitcoin Trust and Ethereum Trust accounted for $388.9 million and $110.0 million, respectively.

The firm stated that since its inception, the Q1 2020 financial record is the highest in the company’s record for a single quarter.

In addition, Grayscale, which described this year as “a billion-dollar year,” stated that for the first time, its products crossed the $1 billion thresholds over 12 months – with the firm recording $1.07 billion within the period. 

The firm added that the achievement indicates that investors are growing more appetite by the day for cryptocurrency-backed products.

However, Cumulative investment across the entire Grayscale products, which include both crypto and non-cryptocurrency-related products over 12 months, reached a whopping $1.68 billion, the firm added.

More institutional investors in crypto

A shocking revelation about Grayscale’s recent financial report showed that the majority of the company’s inflow for Q1 2020 came from institutional investors. 

The firm reported that 88% of the $503.7 million Q1 revenue came from institutional investors, with about 77% investors purchasing Bitcoin (BTC), while 22% were recorded from Ether (ETH) transactions. 

Before this time, institutional investors have been tipped to flood the cryptocurrency industry.  Prominent players like Coinbase CEO Brian Armstrong recently said that institutional interest in crypto-related products have spiked over the years, as his exchange keeps recording transactions between $200 million – $400 million weekly from institutional players.

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