Grayscale Bitcoin Trust (GBTC) Accumulated Over 11,000 BTC in April Out of 54,000 Bitcoin Mined
Prominent crypto trader @Rhythmtrader notes:
Grayscale Bitcoin Trust accumulated 11,236 bitcoin in April alone.
Currently 54,000 bitcoin are mined per month.
Right now, they are buying up 21% of the new supply of bitcoin.
In a year, the halvening will double that number to 42% of the supply.
Institutions are FOMOing.
— Rhythm (@Rhythmtrader) May 29, 2019
Notably, this marks a significant increase in institutional acceptance of the crypto. In fact, during the latest bull run established institutions have played a pivotal role in catalyzing the increase in value of bitcoin.
Additionally, Grayscale Digital Assets Fund is spearheading the campaign to convince investors on the institutional front to #DropGold and invest in Bitcoin, which is gaining momentum with every bullish BTC cycle. As Bitcoin rose above the $8,500 mark and recorded a yearly high, Grayscale’s Assets under Management [AUM] broke the $2 billion ceiling.
5/28/19 UPDATE: Holdings per share and net assets under management for our investment products
— Grayscale (@GrayscaleInvest) May 28, 2019
Shares of the Grayscale Bitcoin Investment Trust (GBTC) have seen a serious increase in their price throughout the past month. Unlike regular cryptocurrency exchanges where the price topped at around $8,900, GBTC saw it shares soar up to $11.44 at the time of this writing. To put things in perspective, each share of GBTC represents exactly 0.00098247 BTC. Doing the simple math shows us that at an $11.44 valuation per share, 1 BTC is currently worth roughly around $11,644.
Paying a 37% premium might seem strange to some, however as noted by Grayscale, GBTC shares are supposed to be the very first publicly quoted securities which are solely invested in and deriving their value from the price of Bitcoin.
Data shows that the number of wallets holding between 1,000 and 10,000 bitcoin has seen a sharp increase since the crypto market bottomed this winter, indicating significant accumulation during the price dip. This shows that not only are institutions interested in Bitcoin, but also the whales in the ecosystem.
BitcoinExchangeGuide had earlier reported about a report released by Diar that shows that 26% of the current supply of Bitcoin is currently stored in addresses that have a balance between 1,000 and 10,000 BTC. Back in August 2018, these addresses held under 20% of the total Bitcoin supply.