Grayscale Bitcoin Trust continues to accumulate BTC - The Cryptonomist
Grayscale is continuing to accumulate BTC on the market to secure them in its Bitcoin Trust.
The pace at which they are being bought is reaching surprising levels.
According to what was revealed by Kevin Rooke on Twitter, in the last week alone, Grayscale has bought and added to its Bitcoin Trust 19,879 BTC, almost three times the volume of bitcoin mined in the same period, 7,081 BTC.
It is actually since the beginning of 2020 that Grayscale has been accumulating bitcoin on the market, but the proportion has become surprisingly large, especially after the halving, when the creation of new bitcoins was halved.
In fact, starting from May 11th, 2020 they bought and added 53,588 BTC to their Bitcoin Trust, while in the same period the new bitcoins generated through mining were only 39,544 BTC.
In other words, it’s as if they bought and secured all the new BTC created after the halving, plus another 14,044.
To date, Grayscale Bitcoin Trust holds almost 400,000 BTC or more than three and a half billion US dollars.
The Grayscale Bitcoin Trust is an SEC-approved financial product that allows investors to invest in bitcoin without having to buy and hold them.
In fact, Grayscale issues publicly traded securities, related to shares of the same fund that has invested exclusively in BTC, so as to reflect its price.
This allows investors to buy an SEC-approved security that has the same value as bitcoin, while Grayscale is solely responsible for buying and holding BTC.
This means that if Grayscale is accumulating bitcoins on the market to secure them in their fund, it is probably because the market demand for the fund’s shares is likely to rise sharply.
In addition, for many investors, especially institutional ones, the direct purchase of BTC and especially their custody generate several problems that they cannot or do not want to deal with. Therefore, the success of the Grayscale Bitcoin Trust is not surprising at a time when demand for BTC continues to be sustained after the price rise following the mid-March crash.