Digital Currency Group's investment arm, Grayscale, has raised an impressive $330Mn across all its products this year. While investors remain heavily geared towards the Bitcoin Investment Trust (BIT), the outfit's flagship product, Assets under Management (AuM) for the cryptocurrency is now flirting with a one-year low and a 27% decrease of inflows 3Q vs 1Q18 highs. On the flip-side, Grayscale is now, by known accounts, the custodian of the largest Bitcoin holdings.

Grayscale's latest quarterly report highlights that the institutional investment house raised $330Mn in the first 9-months of the year, $216Mn going into Bitcoin, 70% coming from institutional investors. Grayscale also saw $22Mn coming into the rest of their portfolio of products bringing up the total to $114Mn at the end of 3Q18.

While no small feat considering the ongoing bear market, inflows into Grayscale's Bitcoin Investment Trust (BIT) dropped by 22% in 3Q18 versus the pervious quarter. September was this year's lowest point with net inflows of approximately $9Mn (see chart).

Grayscale's Managing Director Michael Sonnenshein did point out in an interview with CNBC that it's an equal split between new investors, and investors averaging down their entry point.

|| BOUNCE BACK?

Diar estimates place October-2018 as having seen an uptick with net flows increasing between $17-18Mn as investors find opportunity in the 1-year low price of Bitcoin. Ceteris paribus, this would mean that Grayscale would have to bring in net capital to the tune of $40Mn in the next two months to meet 3Q18 numbers.

|| DEPENDS HOW YOU LOOK AT THINGS...

While the AuM for the BIT is likely to hit a one-year low in November, in terms of Bitcoins, locked away in the vaults on Xapo, Grayscale's custody provider, are upwards of 200k coins - just over 1% of total circulating supply.