Institutional investors continued to accumulate products in shades of gray in the fourth quarter, highlighting the continued urgency of exposure to Bitcoin (BTC) and Ethereum (ETH)
Total investments in the grayscale product family reached $ 3.3 billion in the last quarter of 2020, which translated into average weekly inflows of $ 250.7 million, the digital assets manager said on Thursday. . This represents a three-fold increase over the third quarter, when gray-scale products raised $ 1.05 billion.
Grayscale’s Bitcoin Trust generated $ 217.1 million in average weekly entries. The Ethereum Trust saw an average of $ 26.3 million in new invested capital.
Ninety-three percent of new investments came from institutional investors, with asset managers accounting for the largest share, according to the gray scale. It is an increase of nine percentage points in relation to the third quarter, when institutions represented 84% of the new capital.
Throughout 2020, investments in grayscale products totaled $ 5.7 billion. This is more than four times the cumulative entry between 2013 and 2019.
The gray scale data reflects a turning point for Bitcoin in 2020, when smart money investors began to view the digital asset as an inflationary hedge and long-term value reserve. That narrative helped propel Bitcoin to a price of nearly $ 42,000 in early January, after more than doubling in just three weeks.
The institutional adoption of Bitcoin has put the asset on a path to maturity, according to Goldman Sachs executive Jeff Currie. However, he acknowledged that Bitcoin still has a long way to go before it is considered an institutional-level asset.
The bull market may receive additional momentum in the coming weeks, as the new Biden government prepares a multi-trillion dollar stimulus program. The considerable devaluation of the US dollar is pushing more investors into Bitcoin.
The gray scale did not immediately respond to a request for comment