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.