Latest Grayscale Report: Digital Asset Funds Add $905 Million in Record Quarter

Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: ANTÓNIO MADEIRA, reprinted with authorization by Odaily.

Editor's Note: This article comes from

Cointelegraph Chinese (ID: CointelegraphChina)

, Author: ANTÓNIO MADEIRA, reprinted with authorization by Odaily.

Grayscale Investments has just released its quarterly report, which shows that institutional demand for Bitcoin and other digital assets is still on the rise despite low volatility in the price of Bitcoin (BTC). According to the report, the quarterly investment in Grayscale’s digital asset products reached $905.8 million, a new high.

The inflow of nearly $1 billion represents a near doubling of the $503.7 million that Grayscale achieved in the first quarter of 2020. Bitcoin continues to lead the way in terms of total funds invested by Grayscale, with 82.92% ($751.1 million) invested in the Grayscale Bitcoin Trust (GBTC).

Institutional investors dominate

However, during the quarter, Grayscale saw a significant increase in new investors, accounting for 57% of the total number of investors.

Although the proportion of new investors has increased, they accounted for only $124.1 million of the funds flowing into Grayscale’s digital asset products.

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New Grayscale Investors in Q2 2020 Source: Grayscale

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Institutions are jumping into the altcoin market

While new investors account for a large portion of investing in Grayscale's products, returning institutional investors have also expanded into other asset classes. This may be due to the fact that Bitcoin price volatility is currently at an all-time low.