Grayscale — one of the most well-known institutional investment firms in the crypto space — has revealed that institutional investment into crypto skyrocketed in 2019. Specifically, Grayscale recorded inflows of more than $600 million in 2019, which is more than the inflows from 2013 through 2018 combined.
It is perhaps surprising that Grayscale has seen record crypto investment levels, especially if you consider that nine out of 10 of its products have seen losses in 2019.
That said, it is a common investment strategy to buy assets when they are cheap. So basically, this data suggests that institutional investors expect crypto prices to rise in the future, particularly Bitcoin (BTC), and saw the Bitcoin (BTC) prices during 2019 as a good opportunity to buy.
Zooming out, the crypto space matured significantly in 2019, with the launch of Bakkt physical Bitcoin Futures that are operated by the Intercontinental Exchange (ICE). Also, Bitcoin Options launched at the beginning of 2020, and that’s another major step towards the crypto space becoming a mature financial sector.
Beyond this, options for institutional crypto custody proliferated in 2019, making it easier than ever before for large investors to buy and store crypto in a compliant and completely safe way.
Essentially, this data indicates that the crypto space is ready for institutional investors, and those investors seem to agree. The influx of institutional investors during 2019 may just be a prelude to a tidal wave of institutional investment in the crypto space. If an economic recession occurs, or if geopolitical tensions reach a boiling point, institutional money will be able to flow into the crypto space like never before.