Soaring Bitcoin Helps Rise Grayscale Assets To $ 20 Billion In 2020

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In this news, we discuss the Soaring Bitcoin Helps Rise Grayscale Assets To $ 20 Billion In 2020

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NEW YORK (Reuters) – Grayscale, the world’s largest digital currency manager, said on Thursday its assets under management jumped more than 900% to $ 20.2 billion at the end of last year, thanks to record fourth quarter inflows and the soaring price of bitcoin.

The cryptocurrency manager started 2020 by overseeing $ 2 billion in assets.

In a report, Grayscale said it saw record fourth quarter investor demand, with around $ 3.3 billion in inflows. Investments in Grayscale products exceeded $ 5.7 billion in 2020, more than four times the cumulative inflows of $ 1.2 billion from 2013-2019.

Grayscale’s cause also contributed to the boom in bitcoin, which hit an all-time high of $ 42,000 last week. Bitcoin was last up 6.4% to $ 39,748. In 2020, bitcoin climbed more than 300%.

“The monetary and fiscal measures taken by governments around the world have served as a catalyst for the surge in interest in bitcoin,” the crypto fund manager said in the report. “As monetary inflation has become a pressing concern, institutional investors have taken action by allocating to bitcoin.”

Grayscale’s bitcoin-focused flagship product – Grayscale Bitcoin Trust – ended 2020 with assets of $ 17.5 billion, up from $ 1.8 billion at the start of the year.

Institutions have historically accounted for the majority of Grayscale’s entries and this was especially true in the fourth quarter. Institutions accounted for 93% of capital inflows, or $ 3.0 billion, Grayscale said.

Reporting by Gertrude Chavez-Dreyfuss; Edited by David Gregorio

Original © Thomson Reuters

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