While everybody else was closing up shop, Grayscale was having a blockbuster year.
According to the company’s “2019 Digital Asset Investment Report,” the New York-based firm attracted a whopping $607.7 million in investments last year, surpassing the cumulative amount it raised from 2013 through 2018.
Grayscale scored back-to-back quarterly investment in excess of $225 million in the final quarters of the year. The Grayscale Bitcoin Trust alone attracted $193.8 million in the fourth quarter – the largest quarterly capital raise it had since inception.
And that’s not all:
In 2019, Grayscale also brought on new clients that collectively accounted for $146.9 million in new investment, or approximately 24% of total capital raised for the year. The other $460.8 million (76%) came from existing investors. Moreover, 36% of clients now have allocations to multiple products within the Grayscale family, while the remaining 64% are invested in a single product
Institutional investors, specifically hedge funds, remain the primary source of capital. The group added over 70% of new capital last year, though high-net-worth individuals piled on nearly $100 million in the fourth quarter.
All in all, aggregate investment in Greyscale’s funds surged to $1.17 billion.
Photo: Colin Knowles