
Grayscale Investment, the market’s leading cryptocurrency asset manager, has cracked a new level and is now holding more than 500,000 Bitcoin in its Bitcoin Trust.
According to a post released by the investment firm, Grayscale now holds more than $8.35 billion USD worth of Bitcoin in its fund. This, taking the Bitcoin in circulation at the moment, represents nearly 3% of all Bitcoin currently (a figure which might actually be higher if we consider the estimated 3.7 million Bitcoin which has been lost).
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
Grayscale’s aggressive buy into cryptocurrency
Institutional investors had been dipping their toes into the cryptocurrency scene before this year, but it seems Grayscale took a dive into the deepend in 2020. The Grayscale Bitcoin Trust has accumulated nearly 50% of its entire holdings in the past six months only; marking a massive leap into the industry. Despite a stall earlier this year, the current aggressive buying of Bitcoin notes a possible exponential increased interest of insitutional investment.
Investors opting to trade, buy, or hold through a cryptocurrency firm like Grayscale tend to pay a premium for security and regulation. With safety as a major appeal given the industry’s typically unreguated nature, institutional investors are often willing to pay the premium, which at Grayscale is almsot at 20% on top of the annual 2% fee.
But it’s not only Bitcoin purchases
The firm has also been investing in the leading cryptocurrency altcoins too. Revving up the intake, Grayscale’s Ethereum Trust currently holds approximately $1.175 billion worth of Ether, which marks 2.24% of the entire network’s cap. The $9.9 million total value managed by the fund is made up of eight different digital assets, including Litecoin, Stellar, Bitcoin Cash and ZCash. However, Bitcoin makes up the fairest share.
11/16/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $9.9 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/Hf8rOqZm1W
— Grayscale (@Grayscale) November 16, 2020