Grayscale Investments, the largest conglomerate in the crypto industry, recently released its Digital Asset Investment Report for the second quarter of 2019. Report data shows how the crypto market is maturing as inflows nearly doubled quarter-over-quarter, from $42.7 to $84.8 million. This demonstrates that the recent rally in digital asset prices is supported by fresh investment from institutions. The report also a major interest in Bitcoin products which accounted for 24 percent of total inflows.
Institutions Driving the Market
The latest report from Grayscale Investments has shown that the growth of the cryptocurrency market is becoming increasingly solid and mature. According to the Q2 report, the company’s assets under management nearly tripled from $ 926 million to $ 2.7 billion thanks to the rise of cryptocurrencies prices started in April 2019.
This bullish wave allowed all 10 Grayscale investment vehicles to generate positive performance net of fees. Quarterly returns for industry benchmark products Grayscale Bitcoin Trust and Grayscale Digital Large Cap Fund were 178.8 percent and 147.6 percent, respectively.
But the increase in prices is not the only reason. The inflows of the second quarter almost doubled, demonstrating that there is constant support by new capital into the market. According to the report, the distribution of investments is rather asymmetric, Bitcoin Trust accounted for 76 percent of inflows, capturing a larger slice of the pie compared to Grayscale Ethereum Trust, which reached $14 million followed by Grayscale Ethereum Classic Trust which reached $5.5 million.
The most interesting thing to note about these figures is that 84 percent of the demand came from institutional investors, showing that the crypto market is no longer a niche for retail investors.
Baby Boomers Fuelling Bitcoin
During the 2019 Mid-Year Review Webinar,