Total investments into Grayscale’s family of products reached $3.3 billion in the final quarter of 2020, which translated into average weekly inflows of $250.7 million, the digital-asset manager reported Thursday. That’s a threefold increase from the third quarter when Grayscale products raked in $1.05 billion.
Grayscale’s Bitcoin Trust generated $217.1 million in average weekly inflows. The Ethereum Trust saw an average of $26.3 million in new capital invested.
Ninety-three percent of new investments came from institutional investors, with asset managers accounting for the largest share, according to Grayscale. That’s a nine percentage point increase from the third quarter when institutions accounted for 84% of new capital.
In all of 2020, investments into Grayscale products totaled $5.7 billion. That’s more than four times the cumulative inflow between 2013 and 2019.
Grayscale’s data reflect a turning point for Bitcoin in 2020, as smart-money investors began to view the digital asset as an inflationary hedge and long-term store of value. That narrative helped propel Bitcoin to a price of nearly $42,000 in early January after more than doubling in just three weeks.
Institutional adoption of Bitcoin has put the asset on a path to maturity, according to Goldman Sachs executive Jeff Currie. However, he acknowledged that Bitcoin still has a long way to go before it’s considered an institutional-grade asset.
The bull market could be given added impetus in the coming weeks as the incoming Biden administration prepares a multi-trillion-dollar stimulus program. The considerable devaluation of the U.S. dollar is pushing more investors into Bitcoin.
Grayscale did not immediately respond to a request for comment