Grayscale’s Bitcoin Investment Trust (GBTC) which prides itself to be the first investment trust in the US is reported to be worth less than a billion dollars. Notably, this is the first time in 2018 that the value of the firm has fallen behind the billion dollar mark.
However, it is to be noted that the entity is seeing a record amount of Bitcoin deposits even though the worth in dollars seems to be low. They claim to be holding more than 203,000 BTC which makes them the biggest institutional investment firm in the crypto space. The amount of Bitcoins possessed by them equals 1% of the circulating supply.
BIT enables investors to gain exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins.
Although, Greyscale’s other investments have to pick up the slack. Diar says in their weekly update:
“The current Assets under Management for all 8 products sits at a tiny 56.4Mn, a notch over 6% of the sponsor's total. This has in fact now decreased from 8% when Grayscale launched its Zen Fund.”
Distinctly, Greyscale has been a favorite for instututional investors with about 56% of capital inflow in 2018. In July, Greyscale released a report saying that the average investment sum was $848,000 for institutional investors, $553,000 for family offices, $335,000 for retirement accounts, and $289,000 for individuals.