Digital asset management firm Grayscale Investments had a bullish first quarter of 2019, as revealed by the company’s recently published Digital Asset Investment Report.
According to the report, product inflows grew 42 percent compared to numbers posted in Q4 2018. The company’s Bitcoin Investment Trust (BIT), in particular, saw a large number of investments during the quarter, securing an average weekly investment of $3.2 million out of Grayscale Investments’ total weekly investment count of $3.3 million.
The firm’s counts trusts for cryptocurrencies such as bitcoin cash, ether, XRP, and other crypto assets among its non-bitcoin investments.
Hedge fund inflows see staggering increase
Grayscale Investments also reported that total inflow from hedge funds, which amounted to less than $1 million in Q4 2018, grew to $24 million in Q1 2019 for an increase of over 2,400 percent.
The report notes that hedge fund inflows make up 56 percent of all of the firm’s investment inflows for the quarter. The staggering increase in hedge fund inflows helped power a 42 percent increase in total investment inflows, from $30.1 million in Q4 2018 to $42.7 million in Q1 2019.
The composition of Grayscale Investments’ investors also saw a shakeup. In the first half of 2018, 56 percent of the firm’s investors represented financial institutions. That number has since increased to 73 percent.
Bitcoin’s steady resurgence in price had recently caused Grayscale Investments to adjust their Digital Large Cap (DLC) Fund’s cryptocurrency holdings, significantly reducing its exposure to XRP and ethereum and shifting focus to bitcoin, bitcoin cash, and litecoin.
Earlier this month, the firm had also rolled out a provocative ad campaign urging investors to ditch gold and invest in bitcoin instead.