The biggest bitcoin trust brought in a record $608 million last year - and most of it was from hedge funds

Carmen Reinicke

January 17, 2020 3:06 PM

Grayscale Investments had $608 million in inflows in 2019, more than the previous six years combined.

FILE PHOTO: A cryptocurrency mining computer is seen in front of bitcoin logo during the annual Computex computer exhibition in Taipei, Taiwan June 5, 2018. REUTERS/Tyrone Siu

It's the largest asset manager for digital currency such as bitcoin.
Almost three-quarters of Grayscale's 2019 assets raised came from institutional investors like hedge funds, the company said.
Watch Bitcoin trade live on Markets Insider .
Read more on Business Insider.

It looks like cryptocurrency is here to stay.

In 2019, Grayscale Investments, the largest asset manager for bitcoin and other cryptocurrency, saw $608 million in inflows, its best year ever. In addition, the record number surpassed its cumulative investment from the last six years combined, the company said in a press release .

The biggest portion of Grayscale's 2019 investments came from institutional investors, primarily hedge funds, according to the report. Institutional investors including hedge funds accounted for 71% of inflows in 2019, up from 51% in the previous year.

Grayscale also grew its investor base in 2019, bringing in $146.9 million from new clients. The injection from new clients made up about 24% of the total capital raised in the year, according to the company's investment report.

Grayscale Bitcoin Trust, the largest fund of its kind, also had a record fourth quarter in 2019. Investments in the trust over the quarter totaled $193.8 million, the largest quarterly raise since Grayscale was founded in 2013, the firm said.

In 2019, bitcoin gained roughly 95%, outpacing the S&P 500, which rose 29% , and gold, which advanced about 18%.

Grayscale Investments now has more than $2 billion in assets under management, the company said.