Grayscale investments has once again proven its bullishness on Bitcoin. Over the past 7 days, the company’s Bitcoin trust, the Grayscale Bitcoin Trust has added some 17,000 BTC to its stash. This was revealed by data from bybt.com. This is the equivalence of $182 million in today’s value of the asset.
Since its establishment in September 2013, the trust has accumulated 450,000 bitcoins valued at $4.7 billion based on current market price.
GBTC is emphatic on its position regarding the digital asset as seen from the display of its Bitcoin holding value on its website. According to the bybt.com data, the recent acquisition was done in the past 7 days.
09/25/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.— Grayscale (@Grayscale) September 25, 2020
Total AUM: $5.8 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/FtGxWWnKhE
With 449,000 bitcoin in its kitty, the trust holds 2.14% of all the possible 21 million bitcoins that could come into existence. Considering that not all that coin would go into circulation, the trust’s holding percentage is higher. With 18.5 million bitcoins in circulation, Grayscale holds 2.43% of all the coins in circulation.
Wondering how GBTC was able to add 17,000 BTC in just 7 days? Michael Saylor of Microstrategy explained:
“To acquire 16,796 BTC, we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each [three] seconds,” Saylor said. “~$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike,” he said.
Bitcoin has recently increased its market dominance again to 60% as investor confidence soared. Some analysts believe that the Covid19 pandemic contributed to the demand for virtual payments. The coin which recently traded above 12,000 in the past one month has found strong support above $10,000.
With trusts such as Grayscale scooping up large volumes of the coin, your guess is as good as mine what the consequence would be.
In a recent tweet, the CEO of Coincorner, Danny Scott, the UK-based Bitcoin exchange, said that it is obvious that Bitcoin trusts are getting bigger and stronger. He added that Bitcoin has traded above $10,000 for 62 days, the first time it passed the 61 days mark since 2017, adding that it is an indication that more investors are willing to support the digital currency above that price.