Companies

Grayscale sees slowing capital inflow in Q4 2018, firm suggests drop due to ‘seasonal challenges’

Quick Take

  • Digital currency asset manager Grayscale saw a “below average quarter” in inflows at the end of 2018, but institutional investors continue to show confidence in bitcoin
  • Capital inflows from the US made up 99 percent of the raise in Q4
New York-based Grayscale, a subsidiary of Digital Currency Group, raised $30.1 million in the last three months of 2018; a third of the record $95.4 million raised in the same period last year.
 
Managing Director Michael Sonnenshein told The Block he was not surprised that Q4 was a “little bit slower” than the $81.1 million in inflows in the third quarter, and suggested the drop was due to “seasonal challenges.” The final quarter, which began in October, coincided with the dramatic fall in bitcoin’s price.