Investment firm Grayscale, the world’s largest digital asset investment fund, has released its new figures and data for the first quarter of 2020 amid an economic slowdown and institutional interest in cryptocurrencies heavily.

Investment in Grayscale products for the first quarter of 2020 totaled $503.7 million, the largest quarterly increase in the fund’s history (previous increase was $254.8 million in Q3 2019).

The Grayscale Bitcoin Trust product saw a record quarterly inflow of $388.9 million, while the Grayscale Ethereum Trust managed $110 million, and the remaining $4.8 million was distributed among the rest of the other Grayscale products.

Grayscale Investments now owns about 1.7% of the circulating supply of Bitcoin and the assets under management represent 1.2% of the total digital asset market capitalization.

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It is worth noting that the majority of crypto investments (88%) came from institutional investors, dominated by hedge funds, and new investors brought in $160.1 million.

The nature of these hedge funds is generally mixed, with total crypto investments in all of Grayscale’s products, since the fund’s inception in 2013, at $1.68 billion.

A large number of investors (38%) have also diversified across the various digital asset products offered by Grayscale (29% diversification in Q1 2019).

Investments in Grayscale Fund last year:

The “Grayscale” crypto fund set a record last year as well. The data reveals that the fund’s inflows over the past twelve months amounted to $1.07 billion, and the majority of investments (79%) were coming from institutional investors, which were dominated by hedge funds. once again.

What Grayscale Crypto Investment Data Reveals

Grayscale investment data indicates that institutional investors are primarily increasing their holdings in the digital asset class, despite the economic slowdown and the risky volatile nature of crypto assets.

Many investors are waking up to the fact that digital assets should be an essential component of their investment portfolios.

The Grayscale report also notes that demand peaks when investors look to hedge against a stock market sell-off and a drop in the price of traditional assets.

Read:Grayscale prepares for legal battle with SEC over Bitcoin ETF

The report also notes that nearly half of the inflows came from retirement accounts, demonstrating the investor’s commitment to holding digital assets for the long term and shared optimism in the future of crypto assets.

In addition, most investors are now more diversifying their investments within the fund’s portfolio of products than ever before, a strategy that indicates a higher risk appetite and a deeper search for new, uncorrelated assets, which can offer significant returns in a widely unstable investment environment.

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