Grayscale Bitcoin Trust product continues to break new records, but be careful on interpreting the driving factor behind the flows

This week Grayscale Investments, the world's largest digital currency asset manager, said it raised $1.05 billion for investment products during the third quarter of 2020 — the largest inflow of funds from investors in a single quarter in Grayscale’s history. The AUM across its product suite now sits right under $6 billion, good for nearly 3x the total AUM at the end of 2019.

The firm's most popular product, the Bitcoin Investment Trust (GBTC), cleared another ~$720 million dollars worth of inflows in the third quarter, and 2020 inflows are also 3x that of the total cumulative inflows before the start of the year.