Grayscale, the investment firm that runs the Grayscale Bitcoin Trust (GBTC) has accumulated another 15,114 bitcoin ($241 million) on behalf of its clients this week. The trust now holds a total of 481,711 bitcoin, representing 62% of all bitcoin ownership circulating publicly-traded companies.
In Brief
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Grayscale bought another 15,114 Bitcoin ($241 million), totalling 506,000 bitcoin under management.
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Created in 2013, GBTC is the company’s biggest trust.
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The total value of assets under management now exceeds $8.2 billion.
Grayscale is the largest aggregator of bitcoin in regards to publicly traded companies. Its total investments now comprise over 2.2% of bitcoin’s entire market capitalisation as investors rush into the firm’s reputable arms to buy more bitcoin.
Managing Director of Grayscale, Michael Sonnehnshein, declared this week the largest capital raise week “EVER,” after the firm raised $262 million. He said the company “raked in over $115 million in Bitcoin alone.”
Grayscale runs various trusts which are used as a custodial solution for private investors to own cryptocurrencies. Shares in the trust trade publicly; their prices track the price of the cryptocurrencies. Its Bitcoin trust is the largest.
The Trust’s fees are high, and shares typically reflect a premium bitcoin purchase. However, this makes sense for high net worth investors who do not want to deal with crypto directly, and allows them to get exposure to bitcoin and cryptocurrencies from a tax-efficient standpoint.
Grayscale Bitcoin Trust (GBTC), which was created in 2013, is the company’s biggest trust. Total value of assets managed by Grayscale Bitcoin Trust (GBTC) now exceeds $8.2 billion.
The Grayscale Bitcoin Trust holds 481,711 Bitcoin, which corresponds to 62% of the 814,359 Bitcoins in the ownership of publicly-traded companies, according to figures from Bitcointreasuries.
At the time of publishing, bitcoin is trading at $16,010. It has decreased by 1.54% in the past 24 hours.
Institutions close in on the bitcoin trade
In September, a survey from insurance firm Evertas found that institutional investors were planning on increasing their focus on crypto assets in the coming years.
Per the report, 76% said they believed there will be more mainstream financial services companies and fund managers getting into crypto, and the same percentage said that they believe negative interest rates and yields on bonds will also drive them further into crypto asset investments.
Since then, bitcoin has continued to trade at ever higher prices, cutting through the $10,000 level like butter as investors jump in before the train leaves the station. The success of various funds such as Grayscale is a testament-by-proxy to bitcoin’s continued successes.
Back in July, we released our own report as to why bitcoin will continue its ascension to new all time highs. A $16,000 bitcoin price-tag is still cheap.
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