Grayscale fund reached half a million bitcoins in custody

Key facts:

Grayscale is the publicly traded company that handles the most BTC in the entire market.

The firm also increased its ethers pool, capitalizing $ 1.1 billion in ETH.

Grayscale, one of the largest digital asset management companies in the United States, this week celebrated the arrival of half a million bitcoins in its investment fund.

After more than seven years operating in the United States, Grayscale holds the title of the publicly traded company with the largest amount of bitcoin in its custody. And now that the firm owns about 500,000 BTC in its Grayscale Bitcoin Trust fund, it can be said that it would be handling almost 3% of the bitcoins issued and just over 2% of the total supply of the network.

Bitcoin is programmed to issue a finite number of bitcoins, the round number of 21,000,000 coins. Grayscale has built a good slice of the Bitcoin pie over the years, although 2020 has been an especially prolific year for the company. In the last six months, the amount of bitcoins in their custody has increased by 50%, according to records from the firm.

Grayscale also reported last week of November as the one with the highest influx of bitcoins into the fund. Some 15,907 bitcoins were mobilized by the firm by the end of November 15, according to studies by the company. He also highlighted that the ethers fund owned by the company, Ethereum Trust Grayscale, also recorded an increase in holdings for 2020 that reached 1.1 billion dollars in ethers.

Grayscale would be handling over $ 9 billion worth of bitcoin with the cryptocurrency’s price to this day. Source: Grayscale.

Bitcoin catches the attention of companies and institutional investors

This behavior would reveal that institutional investors are increasingly interested in bitcoin and cryptocurrencies in general., as Grayscale Bitcoin Trust and its other funds are products designed for the traditional financial market. When the Bitcoin fund debuted in 2013, it was planned as a private cryptocurrency investment project where only a few accredited investors could participate.

Over the years, the fund was opened to public listing, consolidating its operation in 2020 with its registration with the United States Securities and Exchange Commission (SEC) for its regulated operation. While all this was happening, the interest in bitcoin among institutional investors has exploded, becoming adopted by figures of great importance in the financial world such as Stanley Druckenmiller and Bill Miller.

While Grayscale continues to be the largest Bitcoin whale among publicly traded companies in the United States, other firms have also decided to participate in the cryptocurrency market. As CriptoNoticias has reported in the past, firms like CoinShares, Microstrategy, and Square are also convinced in the future of Bitcoin.

CoinShares, Microstrategy, Galaxy Digital, and 2iQ are other companies with large known bitcoin holdings. Source: Coin98 Analytics.

However, these companies still have a long way to go before they can match Grayscale’s holdings. For example, Grayscale’s fund has seven times more bitcoin than CoinShares, which accumulates a total of almost 69,000 bitcoins. And this is the company that comes closest to it in terms of bitcoin holdings, since Microstrategy has about 38,250 bitcoins and Square almost 5,000 BTC.

Despite the vast difference in the funds they handle, all of these institutional bitcoin purchases have helped push the price of the cryptocurrency into the current bull rally. A green market that continues to inflate thanks to initiatives such as Paypal, which, as we reported, already allows the purchase and sale of bitcoins on its platforms for all residents of the United States.