Institutional investors not scared by Bitcoin sell-off - Grayscale report

Institutions are increasingly interested in digital assets, according to the third quarter report published by Grayscale Investments. The cumulative inflows amounted to $254.9 million in the reporting period, which is three times as much as in the second quarter ($84.8 million). 

Grayscale Bitcoin Trust remains the most popular instrument among investors, In the third quarter, it attracted $171.7 million (over 67% of the total amount). 

" In 3Q19, we saw the heaviest quarterly inflows to Grayscale Bitcoin Trust in the product’s six-year history, including nearly $75 million in a single day. July inflows also reached the highest level we’ve seen in a single month, well above the previous high of $64.7 million raised in December 2017," the company said. 

Notably, the experts emphasized the growing interest in altcoins. In 2019 the inflow in altcoins funds reached $104.4 million. When it comes to altcoins. investors tend to choose Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust. These products raised  $77 million and $24.9 million respectively. 

Apparently, the institutional players were not discouraged by an unimpressive price movements on the cryptocurrency market. In the third quarter, Bitcoin retreated from the area above $11,000 and hit the low at $7,728. At the time of writing, BTC/USD is hovering marginally below $8,000. It has lost over 22% on a month-on-month basis, though the coin is still over 100% higher than in the beginning of the year.