Institutional demand for Bitcoin increased significantly at the end of 2020, which we discussed in several previous articles on the Bitcoin Arab website.

Among the indications and indicators that suggest an increase in institutional demand for Bitcoin, “Grayscale” company achieved a new record, according to its report for the fourth quarter of 2020.

a statement The director of digital assets at Grayscale said institutional investors have committed more than $3 billion to the Grayscale products on offer, with Bitcoin clearly dominating.

Institutional investors investing over $3.3 billion in crypto at the end of 2020:

Despite the challenges that 2020 brought to the financial markets, it was beneficial for some companies, as Grayscale celebrated its best year so far with massive allocations of cryptocurrencies primarily directed to institutional investors.

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The first three quarters of 2020 showed record results, but the fourth quarter report beat them all.

Grayscale noted that the total investment during the past three months of 2020 amounted to $3.3 billion, while the amount as a whole was $5.7 billion for the full year.

This means that nearly 60% of all investments came in the fourth quarter of 2020.

In addition to the positive numbers achieved, Grayscale said it has attracted cumulative inflows of $1.2 billion from the beginning of 2013 to 2019.

In other words, inflows in 2020 were more than five times what they had been for the previous six years combined.

Additionally, “Grayscale” highlighted the growing appetite from institutions, with 93% of total inflows from these institutional investors coming in the fourth quarter of 2020, while the annual average was 87%.

With regard to the geography of the upcoming investment institutions on the crypto market, it was as follows:

• 45% of the investments came from the USA.
• 55% of the investments came from investors outside the USA.

GBTC Bitcoin Fund Dominates Again:

As in the past three quarters, the Grayscale Bitcoin Trust attracted the most money.

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In the fourth quarter, the company’s bitcoin fund raised $2.8 billion in all inflows, which translates to a whopping 85% share.

On an annual basis, the GBTC fund raised $4.7 billion.

According to the numbers presented above, most of the money came in the fourth quarter, when Bitcoin started to rise.

Grayscale’s statement reads:

While the supply of newly created bitcoin has slowed as a result of the bitcoin mining reward split in May 2020, financial flows into Grayscale have accelerated significantly.

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The amount of bitcoin flowing into the Grayscale Bitcoin Trust during the fourth quarter of 2020 was almost double the amount of bitcoin mined during the same period.

As expected, Ethereum ranked second behind Bitcoin in terms of institutional appetite at Grayscale, where the Ethereum TRUST fund generated $342 million.

The company’s other products such as Ethereum Classic, Bitcoin Cash and Litecoin also recorded steady flows during the last quarter of 2020.

It should be noted that “Grayscale” recently announced that it will terminate the Ripple investment fund “XRP Trust” due to its legal problems with the SEC.

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