Inflows into Grayscale products picked up 40% in Q1, fueled by offshore hedge funds looking for bitcoin exposure

Grayscale, the world's largest cryptoasset manager with more than $1.2 billion in AUM, released its Q1 investment report which details investment product inflows and changes in client mix during the quarter.

The asset manager saw more than a 40% QoQ bump in product inflows, from $30.1 million in Q4 to $42.7 million in Q1. Contrast to the prior 12 months, 99% of inflows into Grayscale products went into its Bitcoin Trust, compared to 76% of inflows over the prior year. 

The report also highlighted a shift in client mix in the quarter, with hedge funds significantly increasing investments from less than $1 million in 4Q to close to $24 million in 1Q. Meanwhile, the percentage mix of total quarterly inflows stemming from accredited investors softened from 7% trailing 12-months to 1% in 1Q, while family offices grew to now 10% of total inflows. Geographically, offshore investors made up almost half the total inflows, up from 32% over the past year.

About Author

Ryan Todd is a research analyst at The Block where he focuses on the convergence of fintech and digital assets. Previously he worked at Deutsche Bank as an equity analyst covering consumer finance and payments companies, and also spent time at ConsenSys exploring the broader Ethereum ecosystem. Ryan holds a BS in Economics and Accounting/Finance from Florida State University, and MS Finance from Vanderbilt University.