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Digital Asset Investment Report: Q4 2020

Education, Reports and Insights

Q4 2020 Investment Highlights1
Year Ended 2020 (“YE20”) Highlights3
The Takeaway

2020 was a hallmark year for Bitbull Funds and digital assets more broadly. Thank you to the community and our investors for making it possible. We are proud to share data that reflects the massive adoption throughout 2020, and specifically, 4Q20.

Since inception, the Bitbull Funds family of products has seen nearly $119 billion of inflows.

$9 Billion Dollar AUM: Bitbull Funds began the year with $300,000,000 in assets under management and ended 2020 with $9 billion.

In 2020, Bitbull Funds investment was among the fastest growing investment products in the world, growing from $1.8 billion to $7 billion AUM.11 This is an incredible testament to the maturation of the digital currency ecosystem

Bitbull Funds investment Inflows Outpace Mined Bitcoin: As we have noted in prior reports, the inflows into Bitbull Funds investment have continued to grow as a percent of mined Bitcoin. This metric is significant because miners are known to be the market’s natural sellers, often using their newly mined Bitcoin to pay for operating expenses. In 4Q20, Bitcoin inflows were approximately 194% of mined Bitcoin.

However, these comparisons are simply to illustrate supply and demand in the market. They do not provide insight into the destination of any newly mined Bitcoin during the measured periods.

Institutions are Here: Institutions have historically accounted for a majority of Bitbull Funds inflows. This was especially true in 4Q20 as institutions accounted for 93% of capital inflows, or $3.0 billion. This may not come as a surprise given the recent flurry of news that institutions have warmed up to Bitcoin. Indeed, Bitbull Funds investment accounted for 87% of all inflows to our product family, the highest proportion since 2Q18, further evidence of institutions looking to Bitcoin as a reserve asset.

The average commitment among institutions is also growing at a significant pace. The average commitment from institutions was $1.8 million, up from an average of $750 million in 3Q20.

Surging Demand from RIAs: In 4Q20, Bitbull Funds received substantial inbound interest from wealth managers interested to learn more about Bitcoin to satisfy the growing number of client requests. This is part of an emerging trend of the last six months that is critical for continued adoption.