Last year saw inflows surpass the total of the previous 5 years, with the Bitcoin trust fund GBTC setting a new record.

The cryptocurrency investment company Grayscale Investments has attracted over $1 billion in total investments for its Bitcoin Trust Fund (GBTC) launched in the past year.

GBTC

GBTC is a product launched by Digital Currency Group subsidiary Grayscale in 2013. Initially offered only through private placements to qualified investors, it was approved for public listing in 2015, allowing investors to invest in Bitcoin without managing private keys.

In addition, the institution also offers a variety of competing coin trusts, including Ethereum, Ripple, Bitcoin Cash, Litecoin, XLM, Zcash, ETC, and other well-known competing coins. However, investors have continued to focus mainly on GBTC over the years.

In the fourth quarter of 2019, the amount of funds inflow reached 225.5 million Thai Baht, with an average weekly inflow of 11.7 million Thai Baht. After exceeding 225 million USD for two consecutive quarters, the total inflow for last year reached 607.7 million Thai Baht.

The inflow of funds in 2019 alone exceeded the total of the past five years, with the total investment in Grayscale products reaching 1.17 billion Thai Baht. This indicates a growing trend in the market.

Michael Sonnenshein, Managing Director of Grayscale, stated that 71% of last year's fund inflows came from institutional investors, saying:

We have seen record-breaking investments in Grayscale's product series, indicating a continued growth in demand for cryptocurrency products by investors, with a majority of investments coming from large institutions. It is clear that we are experiencing adoption by traditional investment institutions.

According to a report, 76% of Grayscale's inflows last year came from existing users, with a growth of 24% in new users. 36% of users invested in multiple products, while 64% preferred a single product.

Continued Development of Cryptocurrency Assets

ABM reported last year that Grayscale's Bitcoin Trust outperformed most traditional assets and became one of the most active trading securities on the OTC Markets Group. Marissa Arnold, Director of Public Relations at Grayscale, stated:

This indicates a shift among traditional institutions. As the world's largest cryptocurrency asset manager, we believe that these significant inflows indicate a very active market sentiment, with institutions targeting cryptocurrencies.

Regarding the future direction of cryptocurrency assets, Arnold concluded:

The asset class is experiencing validation from more and more traditional companies such as Fidelity and CME Group, sending a signal to traditional institutions and the entire investment community that cryptocurrency will continue to develop as a specific asset class.

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