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Grayscale is still buying Bitcoin: it has 500,000 of them
Grayscale is still buying Bitcoin: it has 500,000 of them
Crypto

Grayscale is still buying Bitcoin: it has 500,000 of them

By Eleonora Spagnolo - 16 Nov 2020

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Grayscale purchased 15,144 bitcoin, equivalent to $241 million

In total, the Grayscale Bitcoin Trust has grown to over $8 billion, a significant increase from last month when it amounted to “only” $6 billion. 

According to Decrypt, Grayscale currently has over 506,000 BTC, of which 481,000 in the Grayscale Bitcoin Trust.

Furthermore, Grayscale currently has $9.8 billion in its cryptocurrency funds, of which over 80% is clearly attributable to Bitcoin

Basically, since last month, Grayscale has increased its trusts by $2.5 billion. In fact, on October 23rd, it announced an increase in its cryptocurrency fund of $300 million, for a total of $7.3 billion. Today, these funds represent a total of just under $10 billion, with a strong growth over the last period. 

These are obviously investment funds directed at institutional investors, so much so that they are intended only for so-called “accredited investors“. Among the requirements are included:

  • 200,000 dollars in annual earnings, 
  • assets of at least $1 million,
  • $5 million in assets. 

Is Grayscale a problem for Bitcoin?

Grayscale can in a way be considered a “Bitcoin whale“. In fact, owning BTC 500,000 means at this moment holding about 2% of the total Bitcoin supply (which currently amounts to 18.5 million BTC). 

Some people find this a problem. What’s certain is that the nature of Bitcoin according to Satoshi Nakamoto’s whitepaper, was to become a means of payment, while the fact that there are big investors and big investment funds involved means that Bitcoin is increasingly becoming a store of value.

This trend could increase as US economic policies continue to anticipate further cash injections

The US elections that crowned Joe Biden as Donald Trump’s successor give investors high hopes. After the outgoing president’s Heroes Act, Biden was willing to propose an additional stimulus package of $2.2 billion. Such a cash injection could only do Bitcoin good. BTC continues to attract retail and institutional investors due to price growth. Predictions on the performance of the queen of cryptocurrencies continue to be quite optimistic. This can only contribute to the Bitcoin rush.

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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