The digital currency asset manager Grayscale saw a below average quarter in inflows at the end of 2018. But, the demand grew from retirement accounts. New investments totaled a record of $359.9 million in 2018. This was nearly thrice the course of 2017’s crypto bull market. Also, Crypto and Bitcoin investment slowed to 63% quarter over quarter to $31.1 million in the fourth quarter.
The Managing Director at Grayscale, Michael Sonnenshein exclaimed that the block is not surprised that the fourth quarter was a bit slower. Although, it was slower than $81.1 million inflows in the third quarter. He also suggested that the drop was due to seasonal challenges.
Taking it further, the investors who opt to save in retirement accounts like 401(k)s and IRAs, could make 40% of the fourth quarter of 2018’s total inflows. Eventually, they represented 15% of 2018’s total inflows, approximately $53.9 million. The institutional investors accounted for 50% of Q4’s Bitcoin and crypto investment inflows as well as 66% for all of 2018. Finally, the family offices and investors fulfilled the rest.
Grayscale elaborated in its Q4 Digital Asset Investment Report that
Given the Bitcoin bear market, the data show average investors are patiently investing for retirement, while large institutions are building core strategic positions over time.
Michael Sonnenshein told IBD that
It was by no means our best quarter, but it’s certainly important to recognize that despite the price declines investors were actively engaged.
Sonnenshein noted that it is almost impossible to invest in Bitcoin and cryptocurrency coins through retirement accounts. Owing to all this when Sonnenshein was asked how he manages the business that has seen such shrinking assets he exclaimed that they’re growing their team with investing in tech and infrastructure.
Grayscale is the world’s largest digital currency asset manager, having $793.6 million in assets under management. JP Morgan is in trend launching a new cryptocurrency JPM Coin, whose value will not fluctuate versus the dollars.