Since the end of 2019, the value of assets under the Grayscale bitcoin trust has grown by more than 156%. Note that the activation of Grayscale occurred against the backdrop of a pullback in the price of Bitcoin.
Investment company Grayscale Investments that enters Digital Currency Group Cryptocurrency Holding, has spent more than $ 182 million over the past seven days to purchase 17 thousand BTC. As a result, the size of her bitcoin trust grew to almost 450 thousand BTC or $ 4.8 billion.
The company’s website says that there are 441,417,700 shares of Bitcoin Trust (GBTC) in circulation (data were taken on August 27, 2020). Each of them is worth 0.00095671 BTC each. According to the Bybt service, the total amount of Bitcoin in Grayscale’s reserves is 449,900 BTC. The company’s digital funds receive assets acquired in the interests of investors for fiat currency, as well as direct investments in cryptocurrency.
Growth dynamics of Grayscale positions in Bitcoin. Source: Bybt
Note that the activation of Grayscale occurred amid Bitcoin price pullback. Bitcoin never managed to gain a foothold above $ 12K, which it reached earlier this month. At the time of writing this article, the asset is trading for $ 10,907.
Bitcoin rate. Source: CoinMarketCap
The volume of GBTC is 2.15% of the Bitcoin limit, which is 21 million BTC. Yesterday, the number of BTC generated exceeded 18.5 million tokens, which means that Grayscale has almost 2.5% of the Bitcoin in circulation at its disposal.
In 2020, Grayscale is extremely active in investing in its bitcoin trust. In the first six months of this year, the volume of GBTC increased by 90%. By the end of September, the value of assets under the trust had grown by more than 156%, from $ 1.87 billion at the end of 2019 to the $ 4.8 billion indicated above.
In August, the US Securities and Exchange Commission (SEC) disclosed information on GBTC institutional investors. In the second quarter of 2020, more than 25 organizations notified the regulator of an investment in a cryptocurrency trust of Barry Silbert’s company. Interestingly, among GBTC investors there are both well-known structures in the market, such as Ark Invest and Horizon Kinetic, and newcomers, such as the Rothschild Investment Corporation.