Recent data from Grayscale shows an increase in institutional investment in Ethereum and Bitcoin
Grayscale’s first quarter 2020 report highlighted the growing interest in Ethereum and the huge amounts of money the company has received from investors. It is worth mentioning that there was a record quarterly entry into the Grayscale Ethereum Trust during this period.
Spencer Noon, head of crypto investments at DTC Capital, said Ethereum has reached a turning point with high net worth investors.
“Institutional investors are buying ETH. The cat is officially out of the bag. From the latest Greyscale report:
[Grayscale] The Ethereum Trust recorded $ 110 million in first quarter tickets. This represents more than all previous combined inputs in the past 2 years ($ 95.8 million). ”
The last few weeks of this quarter have witnessed entries into Ethereum that have really outpaced Bitcoin. In the first quarter, investors invested $ 389 million in the Grayscale Bitcoin Trust, in addition to the $ 110 million invested in the Grayscale Ethereum Trust – totaling $ 498.9 million.
The trust relationships of Grayscale’s digital assets are fully supported by real cryptocurrencies. In all of its products (which also offer exposure to XRP, Bitcoin Cash, Litecoin, Ethereum Classic, Stellar Lumens, Zcash and Horizen), Grayscale recorded a record entry total of $ 503.7 million. The company says investors are turning to its products, despite the current global economic crisis.
Investors are tactically using downgrades to increase their exposure to the asset class, even in a “risk off” environment (investors’ flight from risky assets, such as emerging market bonds, to assets considered more secure, such as US Treasury bonds) . Our segment of institutional investors has also continued to expand, a trend that could gain further momentum as legacy financial institutions reinforce the investment thesis for the asset class.
In addition, as existing investors allocate themselves to various products, the investment community must monitor the expanding demand for diversification within the asset class.