Grayscale Investments Reports 56% of Incoming Crypto Capital Is From Institutional Investors

The emergence of new regulations continues to fuel an influx of institutional capital in the cryptocurrency sector.

In its H1 2018 report, Grayscale Investments revealed that the majority of cryptocurrency investments are coming from institutional investors.

Based in New York, Grayscale Investments is one of the largest digital currency investment firms with $248.39 million in financial products holding cryptocurrencies, according to their H1 2018 report.

Revealed in their H1 2018 report, Grayscale showed that 56% of incoming capital came from institutional investors - indicating rising popularity from firms and individuals with deeper pockets despite a persisting market downturn.

"As the investment community knows, over the last six months, the digital asset market experienced one of the largest price drawdowns since the inception of Bitcoin in 2009. However, what is more interesting, and somewhat counterintuitive, is that the pace of investment into Grayscale products has accelerated to a level that we have not seen before."

Grayscale reported an average weekly investment in single-asset and diversified cryptocurrency products at $9.55 million, citing "Fresh inflows during each week of 2018.".

Over the years, Grayscale has introduced several single-asset investment products to public stock markets, including the Bitcoin Investment Trust and Ethereum Investment Trust.

Grayscale's flagship diversified investment offering, Digital Large Cap Fund comprises of Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin - collectively making up over 70% of the entire cryptocurrency market.

Through shares traded on the public OTC markets, Grayscale offers institutional investors key safeguards against direct cryptocurrency investing, avoiding the safekeeping of private keys and eliminating the risk of exchange hacks.

The steady growth in incoming institutional capital indicates a maturing cryptocurrency market coming into legitimization.