Grayscale Investments stands as a crypto fund manager, and now boasts a total of over 500,000 BTC held within its Bitcoin Trust.
Half A Million BTC Managed By GrayScale
As a Twitter post detailed, posted on the 16th of November, Grayscale now holds on to around $8.35 billion in value in Bitcoin, which stands as a staggering 2.69% of the outstanding supply and market cap of the entire Bitcoin network.
Grayscale Bitcoin Trust now holds more than 500,000 $BTC. Yes, you read that right. Learn more about the world's largest #Bitcoin investment product. #GoGrayscale https://t.co/2sEpUdw8iN pic.twitter.com/9h8nGZ8i4t
— Grayscale (@Grayscale) November 16, 2020
Chainalysis has already gone on record, however, with an estimate that around 3.7 million Bitcoin has already been lost through a number of ways. Should this be true in its entirety, this would mean that Grayscale owns a staggering 3.37% of the circulating Bitcoin supply.
19% Premium On Grayscale Bitcoin Trust Shares
Grayscale caters to those institutional investors that won’t think twice about paying a premium just to buy and hold crypto through a regulated fund and its subsequent security. With its rise in popularity, Grayscale Bitcoin Trust has seen its shares represent $15.62 in Bitcoin apiece.
Even so, there is a premium on Grayscale shares, as much as 19%, which makes each share change hands for an impressive $18.86. Alongside this, an annual fee of 2% is charged by Grayscale, seeing as it’s a fund manager and all.
Grayscale has had its Bitcoin Trust start an aggressive accumulation campaign in 2020. Within the past six months alone, the fund had increased its amount of held BTC by a factor of almost 50%.
With the steep rise recorded for the fund back in 2020, it suggests that institutional interest is starting to snowball for the fund, which is seven years old by now.
Some Institutional Growth
The fund even managed to report its largest-ever weekly inflow just last week. The fund managed to gain around $215 million in Bitcoin, totaling to 15,907 BTC.
Even the Ethereum Trust of Grayscale is making great headway in 2020, ramping up its purchases, as well. As it stands now, Grayscale’s Ethereum Trust boasts 2.24% of the entire capitalization of ETH, worth about 1.175 billion.
Looking at the (relatively) small fish in Grayscale’s listing, its eight other crypto funds manage collectively close to $400 million in assets. Crunching all these numbers, it shows that the firm manages a total of 9.9 billion in assets.
It seems that the institutional players are starting to take notice at the profit that can be gained in the crypto industry. With this, mainstream integration increases, as well as its perceived legitimacy in the eyes of the general public. With luck, this trend will only increase.