On Friday, January 15, $700 million flowed into the asset manager’s various crypto products.

“Yesterday, raised north of $700 million into its family of products…momentum from Q4 seems to be picking up speed into the new year,” tweeted Michael Sonnenshein, CEO of Grayscale, on Saturday.

“1/15/2021 was also our largest single asset raise day, ever,” he added. (Yahoo Finance)

The record daily inflow may have been triggered by Grayscale’s Digital Asset Investment Report for Q4 of 2020. The report threw a highly favorable light on the state of adoption of cryptocurrencies during the year 2020.

Grayscale Q420

“When the history books are written, 2020 will be noted as a major inflection point for the adoption of Bitcoin, and digital currencies more broadly,” said the report.

• Grayscale began the year with $2.0 billion in assets under management (AUM) and ended 2020 with $20.2 billion. That’s an approximately 10x increase.
• Of the total AUM, the firm’s Bitcoin Trust grew during 2020 from $1.8 billion to $17.5 billion. It became one of the fastest-growing investment products in the world.
• The digital asset manager’s 2020 inflow across all products was more than four times the $1.2 billion cumulative inflow during the six years from 2013-2019.

Week ended January 15, 2021

Grayscale said AUM as of January 15 zoomed to $27.1 billion, with its Bitcoin Trust itself accounting for nearly $23 billion.

Institutional interest

During the fourth quarter of 2020, institutions accounted for 93% of Grayscale’s inflows. For the year as a whole, this percentage was 86%.

“2020 was the year institutional investors recognized that bitcoin is a viable option for offsetting the abundance of paper money and the cumbersome nature of gold. In a world with over $17 trillion of negative-yielding debt, we believe bitcoin will continue to become a cornerstone of investors’ portfolios in 2021,” said the Grayscale report.

Grayscale also said that nation-states may take the lead from institutions and start investing in bitcoin.

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