Grayscale Has Another Record Week Gobbling Up $90 Million Bitcoin, 38% More than Mined

Grayscale Investments continue to have a record year.

Recently, we reported that the cryptocurrency asset management company consumed 50% more bitcoin than mined since the halving.

Since the third reward halving that cut down miner inflow from 1800 BTC per day to 900 BTC per day, Grayscale has been buying up bitcoin like crazy.

Since halving, Grayscale has gobbled up 28,413 BTC which is 48% more than the BTC produced in about a month.

Institutional interest surging

In another record week, the company has added 9,502 BTC to their Bitcoin Trust since last week compared to 6,863 BTC generated during the same period. The Form -8k submitted to the SEC on June 4th reads,

“Since the sales reported on the most recently filed Current Report on Form 8-K by Grayscale Bitcoin Trust (BTC) (the “Trust”), the Trust issued 9,884,700 Shares (…) or an aggregate of 9,502.84212328 Bitcoins representing $90,283,806.”

These shares were issued at varying prices to selected “accredited investors” and now there are 376,727,000 Shares issued and outstanding as of June 3, 2020.

Notably, these newly created shares are locked for a period of six months while the company charges a 2% annual fee.

Institutional interest in bitcoin is really picking up in 2020, with CME futures and options trading volume hitting new highs along with the open interest. In May, its total volume jumped 59% to $7.2 bln.

Continued demand

Through its Bitcoin Trust, Grayscale offers investors that primarily consists of hedge funds the exposure to the price movement of bitcoin. This traditional investment vehicle where each share of GBTC represents about 0.00096112 BTC, allows interested parties to invest without the challenges of buying and storing bitcoins.

Currently, bitcoin is trading at $9,700 while GBTC is trading at a premium of over 25% at $11.73.

Grayscale’s Bitcoin Trust currently has $3.5 billion assets under management while the total AUM is $4.0 billion, up from $3.2 billion a month back.

The asset manager reported Q1 2020 as the “strongest” quarter with record inflows while seeing demand at a “record pace.” The company seems to be on track to yet another record quarter, given its bitcoin purchases.

Grayscale also offers exposure to other cryptocurrencies including Ethereum (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH), XRP, Horizen, Litecoin (LTC), Stellar Lumens (XLM), and Zcash (ZEC) through its other products.

Grayscale’s Ethereum Trust (ETHE) is currently trading at a whopping 750% premium.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today