2020-1-17 23:47 |
In its 2019 Digital Asset Investment Report, Grayscale Digital Asset reveals a record-breaking year, especially Q4 of 2019.
Investment for Financial Year 2019 had been $607.7 million that surpassed the combined investment into all Grayscale products from 2013 through 2018. The cumulative investment across Grayscale products have reached $1.17 billion since its inception.
In this “most significant asset raising year in Grayscale’s history,” Q4 played a big part by contributing the largest quarterly investment of $193.8 exceeding $171.7 million in 3Q19.
Interestingly, the price of Bitcoin increased the hardest in Q2 by 160% while Q4 saw the loss of 10.40% which was beaten by the Q3 losses of 25.11%.
Just like the losses, Grayscale saw the back-to-back quarterly investment of $225 million in 3Q19 and 4Q19.
Institutional investors & primarily hedge funds leading the packThis incredible investment performance was in part driven by the expanded user base of the company. Grayscale’s overall client base jumped by about 24% in 2019 and accounted for 24% of new investment at $146.9 million.
However, current investors still lead the growth as over 76% of capital raised, $460.8 came from its existing clients.
Also, it’s no longer only limited to Bitcoin as 36% of Grayscale clients have allocations to multiple products, the company offers investment in Bitcoin, Ethereum, Ethereum Classic, XRP, Zcash, Bitcoin Cash, Stellar Lumens, and Horizen.
When it comes to investors, institutional investors and primarily hedge funds with a share of a whopping 71% continued to be the company's primary source of investment capital for 2019.
Larger investments from high-net-worth individuals (HNWI) however, added a meaningful investment of $93.2 million in 4Q19.
Most of these investors that have been roughly split between the US and offshore investors were more heavily weighted to US-domiciled in Q4.
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