Venture capital firm Grayscale Investments banked a stellar 2019 to surpass the $1 billion mark in total investments.
By the numbers
In a comprehensive eighteen-page report, the firm touted a record Q4 in 2019. It raised $225.5 million into its investment products, lifting the year’s inflow to $607.7 million after back-to-back quarterlies over $225 million, possibly signaling a larger market trend.
71 percent of the year’s inflow sprung from institutional investors. Managing director Michael Sonnenshein told CryptoX:
“We saw record-breaking investment into Grayscale’s family of products, illustrating continued demand from investors for digital currency access products and with a majority of investment coming from institutions, it’s clear that we’re experiencing institutional adoption.”
Existing clients amassed 75% of capital raised. 36% of Grayscale clients now use multiple company products. The company saw its client base grow by 24%.
Grayscale investors love Bitcoin
Grayscale Bitcoin Trust, which CryptoX first reported on last year, led 2019’s investment demand with $471.7 total — $193.8 million of it raised in Q4, another historical high for the New York-based firm.
Signaling a shift among traditional institutions, communications director Marissa Arnold told CryptoX, “As the largest digital currency asset manager, we feel that our numbers are indicative of broader market sentiment and institutional flows into digital currency.”
As younger investors continue finding Bitcoin and other digital currencies safer investments, especially as Bitcoin enjoys a slight surge, this may be the case.
Projecting the larger crypto market, Arnold added:
“The asset class is experiencing increased validation from legacy companies like Fidelity and CME, signaling to institutions and the investment community as a whole that crypto as an asset class is here to stay.”
