Q1 2020 marks Grayscale’s strongest quarter yet, with >$500 million raised … that’s 83% of total capital raised for ALL of 2019, in just ONE quarter!
Grayscale the Crypto WhaleGrayscale Investments’ Q1 2020 report offers some interesting insights into institutional investments in 2020. Hedge fund investments currently dominate the market, with overall institutional investment accounting for 88 percent of all investments. The quarter saw almost a two-fold increase in investments, up from the quarterly high of Q3 2019 of $254.8 million to $503.7 million in Q1 2020. Furthermore, it saw $110 million in Q1 inflow, which is more than all previous inflows of the past two years. Grayscale’s most recent figures also put the firm at $2.33 billion in assets under management in its Grayscale Bitcoin Trust (GBTC).
500%+ Premium on Ethereum TrustInvestors who purchase Ethereum through Grayscale Investments’ Ethereum Trust (ETHE) purchase the cryptocurrency at a premium of over 500 percent, according to reports that emerged in early April. As mentioned previously, each share in the trust corresponds to 0.09427052 ETH, which is worth around $18.50 at the time of publishing. However, investors purchase the share for roughly 90$ — almost five times the price. This is a marked increase over the 200% premiums seen in February. The apparent takeaway from this is that the interest in Ethereum has grown considerably among investors, who are willing to pay a high price to diversify their portfolio. The upside of paying such a high price is that they can use an investment vehicle that has passed regulatory requirements, negating some of the risks associated with more traditional avenues of investing in cryptocurrencies.
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