The number highlights Grayscale’s 2020 aggressive approach to stock up more Bitcoin. Notably, the Bitcoin held by Grayscale has soared by about 50% in the last six months. The surge indicates an increasing institutional interest in Bitcoin. In mid-November, Grayscale revealed that its Bitcoin Trust had about $8.35 billion of BTC. The amount equates to 2.69% of Bitcoin’s current supply and market capitalization. Grayscale announced its Trust has over 500,000 BTC. In the third quarter, Grayscale revealed that it set a new record in capital inflows totaling $1.05 billion, about 81% of which came from institutional investors. A statement from Grayscale indicated that:
Grayscale’s thriving model
The 2020 growth comes after Grayscale invested in a massive ad campaign calling on potential investors to be part of the Trust. Grayscale invites a private pool of wealthy investors, most importantly, institutions, to pledge money to the fund. The money is used to acquire vast amounts of Bitcoin. Typically, investing in a Bitcoin Trust allows people to gain exposure to Bitcoin without worrying about storing it, complying with the law, or filing taxes. Grayscale’s model is thriving due to the lack of a Bitcoin ETF. Investing in a Grayscale Bitcoin Trust is the same as buying up shares in a trust. In general, Grayscale is reflecting the demand for Bitcoin from institutional investors. Grayscale also offers several other exchange-traded products, including Bitcoin Cash, Ethereum Classic, Litecoin, Stellar Lumens, XRP, Horizen, and ZCash. Cumulatively, the company has over $10 billion in Assets Under Management. At the same time, Bitcoin has witnessed its yearly high in 2020. By press time, the asset was trading at $18,086.
