Institutional money is finally showing up in crypto

In 2018, we all thought institutions would show up in droves.

It didn't happen.

Then we thought in 2019, it would happen....

It mostly didn't happen... until the end of the year.

Looking at data from Grayscale Investments, the 4th quarter of 2019 saw huge institutional inflows.

The largest ever in fact.

Check this out:

(Source: https://www.forbes.com/sites/billybambrough/2020/01/16/institutional-money-has-arrived-in-bitcoin-as-grayscale-sees-record-600-million-inflows/#4679c8b25545)

Grayscale announced that it raised over $600 million in 2019, which brought cumulative investment across all of its products to $1.17 billion.

More about that can be seen here:

https://www.globenewswire.com/news-release/2020/01/16/1971467/0/en/Grayscale-Investments-Closes-Out-2019-with-Record-Year-Raising-Over-600-Million.html

What's more...

In the 4th quarter alone, Grayscale saw close to $200 million invested in the Bitcoin Investment Trust, which trades under the ticker symbol GBTC.

That figure marked the largest ever in a quarter.

Of that total raised in 2019, roughly $150 million is said be from "new clients".

Said another way...

Roughly 25% of the record setting year for inflows was from new clients!

And if you are not already familiar, the vast majority of Grayscale clients are of the institutional variety.

In their report, Grayscale's stated that their investors are typically hedge funds, pensions and endowments, with institutions like hedge funds making up the majority of their investor base at about 71%.

A figure that is up from 66% the year prior.

For those wondering where the institutions are, it appears they have finally been making their way in via Grayscale.

Stay informed my friends.

-Doc