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Grayscale Investments, a subsidiary of Barry Silbert‘S Digital currency group, has now acquired nearly $ 500 million in Bitcoin (BTC), since the cryptocurrency went through its third reward block and halved on May 11, 2020, a critical factor that effectively reduced BTC supply by 50%.
This week, Grayscale bought Bitcoin (BTC) about 3 times faster, on average, than cryptocurrency miners could actually generate new blocks.
Kevin Rooke, a digital asset analyst known for his insightful tweets, confirmed that grayscale bought 19,879 BTC (about $ 184 million) in the last week alone. The digital currency will be part of the asset manager’s Bitcoin Trust. The company now has around 400,000 in Bitcoin, an amount worth nearly $ 3.7 billion at the time of writing.
Rooke noted that Grayscale’s crypto-asset investment strategy not only involves acquiring large amounts of the pseudonymous digital currency, but is also buying it at a rate that is around 280% faster than when the new BTC. enters circulation (through mining).
Hodlonaut, a widely followed Crypto Twitter user, underlined:
“The grayscale * alone * took all the BTC mined + 14,000 BTC more from the halving off the table.”
At the moment, there are over 18.4 million Bitcoins in circulation, however, it is estimated that around 4 million of this supply have already been lost or are inaccessible due to the loss of private keys by users (which is the only way to access BTC or crypto accounts).
Grayscale has bought a total of 53,588 BTC since last month’s halving, which means the manager has bought the crypto-asset at an average rate of 1,190 BTC every day since the halving.
If the grayscale continues like this, he is expected to own around 3.4% of the total BTC supply (around 625,069 BTC) by January next year. Grayscale could even own around 10% of Bitcoin’s supply by 2024, if it continues to buy the asset at this rate.
Barry Silbert had indicated last month that Grayscale’s Bitcoin-focused fund would buy significantly more BTC during the second quarter of 2020.
Grayscale Investments confirmed that it has $ 4.1 billion in assets under management as of June 25, 2020. However, this amount changes constantly and significantly within weeks or even days, due to the highly volatile nature of cryptocurrencies.
Earlier this month, Three Arrows Capital, a Singapore-based digital asset hedge fund, became the first qualified investor to hold more than 5% of Grayscale’s Bitcoin Trust (OTC: GBTC) shares.
In April 2020, Grayscale’s Ethereum Trust (ETHE) was trading at a premium of 515%.
It cost $ 90.55 to acquire a stake in Grayscale Investments’ Ethereum Trust (ETHE). This, despite its holdings in Ethereum (ETH) per share being valued at just $ 16.10 at the time. In other words, buying Ether through the trust cost five times more than the open cryptocurrency market.
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