Bitcoin: Grayscale Holdings

BTC News #31

Today, we got some big news that the crypto community has been waiting for. The case against Tether has been settled with the New York State AG. Tether admits to no wrongdoing regarding USDT.

This is big news because it is one of the last negative major news stories against crypto. I’m sure more will come up as the industry develops but currently there isn’t much left holding Bitcoin back. The major barrier to Bitcoin getting to $100k is rising bond yields which is hurting the market as a whole.

Some good news to a bloody weak.

Grayscale Holdings

Grayscale has been one of the top accumulators of Bitcoin this bull cycle. They are the company behind the Bitcoin trust GBTC. GBTC gives institutions the ability to get exposure to Bitcoin without actually having to buy it and store it themselves. Retail investors can also buy GBTC on the open market.

Holding Bitcoin can be too risky for many institutions because of the amount of money they have to protect from all of their investors. Grayscale takes care of buying and storing the Bitcoin, bundle a certain amount of Bitcoin into each BTC share, and allows investors to buy GBTC shares for exposure. Each share comes with an added premium.

I wrote about how each share is calculated in these trusts here.

As more investors buy shares, Grayscale has to go and buy more Bitcoin. Naturally, as Bitcoin demand increases, the amount of Bitcoin Grayscale owns increases as well.

Using Glassnode, we can see exactly how much Bitcoin Grayscale holds and how fast they’re accumulating it. Currently, they hold just over 650,000 BTC. At a $50k BTC price that equals to $32.5 billion.

Their accumulation has been on an exponential increase since last year which highlights the demand for Bitcoin. This metric is a great indicator to see Bitcoin demand in the US amongst larger investors since GBTC was a product created for them.

Through this trust, Grayscale has become of the largest holders of Bitcoin in the world.

In the news…

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Nothing in this article is investment advice. I’m not a financial advisor. Do not make investment decisions based on what is in this article or any other article written by BTC News or Blockedia.