Grayscale Q2 summary: Crypto fund manager reports record AUM after price soar

New York-based Grayscale has hit a record $2.8 billion in assets under management (AUM), according to the company’s second quarter (Q2) report. Amid the crypto price-hike, Grayscale's AUM has tripled from $926 million to $2.7 billion over the last quarter. Similarly, quarterly inflows increased from $42.7 million to $84.8 million - despite its flagship bitcoin passive investment fund, the Grayscale Bitcoin Trust, not being open to new funds in the last two months and its holdings staying relatively flat since April.

The Bitcoin Trust's inflow-freeze may also explain investors' growing interest in other Grayscale products. In the previous quarter, Grayscale Products excluding the Bitcoin Trust comprised just 1 per cent of all inflows; now, they constitute 24 per cent.

Meanwhile, institutional investors continue to make up the vast majority of Grayscale's inflows, comprising 84% of all demand. That's up from 73% in Q1 2019.


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However, Grayscale has seen a shift in the geographic source of new investment capital. While trailing 12-months data shows the dominance of U.S.-based investors, in Q2, two-thirds of all inflows came from offshore funds.

All of the Grayscale investment vehicles generated positive performance net of fees.

[For the full analysis, click here].

About Author

Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.