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Grayscale Bitcoin, Ethereum Funds See Largest Ever Weekly Inflow

Nivesh Rustgi

Nov. 3, 2020

Institutional interest in Bitcoin and Ethereum continues to stay healthy.

254 Million Shades of Grayscale Bitcoin Inflows Up Dramatically

Grayscale’s Bitcoin fund GBTC recorded the largest inflow of around $215 million in the week ending Oct. 29.

Focused on institutions, the uptick indicates a continued appetite for crypto among traditional financial players.

Grayscale’s Bitcoin, Ethereum Funds Attract Institutions

Grayscale Investments LLC offers accredited investors the opportunity to invest in digital currencies via share indices backed by digital assets.

GBTC shares represent Bitcoin holdings in the trust fund. The trust adds Bitcoin equivalent to the share value issued by the investment fund.

Last week, GBTC added 15,907 Bitcoins worth $215 million, reporting a consistent rise in the number of shares issued. The total GBTC now under management (AUM) is $6.41 billion.

Grayscale Bitcoin investment — Grayscale’s Bitcoin Inflow (red), US dollars added (yellow), and no. of GBTC shares issues (blue). Source: Twitter

Apart from Bitcoin, the firm also offers investment in other cryptocurrencies like Ethereum, Bitcoin Cash, Litecoin, Ethereum Classic, Zcash, XRP, Stellar Lumens, and Horizen.

Grayscale’s Ethereum fund (ETHE) has also shown a linear rise in investment since April 2020. The fund added 75,419 ETH worth $28.5M to its treasury yesterday, extending ETHE AUM to $914.9M.

Total AUM of Grayscale — Total asset under management in Grayscale’s ETHE Fund. Source: yCharts

Ethereum leads other altcoins with 12% of the total AUM—GBTC accounts for 86.6%.

Given that investment in Grayscale’s product is only limited to accredited investors, the rising GBTC and ETHE shares indicate positive institutional inflow.

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