Yesterday Grayscale officially declared that it has added another 35,159 BTC to its Bitcoin Trust, worth over $1.2 billion.
This is almost 0.2% of all existing bitcoin in the world, purchased at an average price of $36,296.
In fact, an updated official Grayscale report on its Bitcoin Trust was filed with the SEC yesterday, showing that an additional 37,036,200 shares of the Trust have been issued, which now totals 675,942,800.
The fact is that Grayscale’s clients are not buying BTC but shares in the Trust which is fully invested in BTC.
This way they get indirect exposure to bitcoin, but without having to deal with handling the tokens, and they invest in a fully regulated asset.
The Grayscale Bitcoin Trust
The Grayscale Bitcoin Trust is therefore not a Grayscale investment, but merely a derivative financial product, collateralized in BTC, to allow Grayscale’s customers to invest in this asset more easily, safely and quickly.
In December, the company said it had added 8,000 BTC, and by June the fund was already holding 400,000 BTC, or more than 2 percent of all the bitcoin in the world.
To date, each of the fund’s more than 675 million shares holds about 0.95 thousandths of a bitcoin, for a total of approximately 641,490 BTC, or more than 3.4% of all bitcoin in circulation.
It should be stressed, however, that Grayscale Bitcoin Trust is not an investor, and its market purchases do not represent the company’s financial strategy. Instead, they represent the financial strategy of the trust’s clients as a whole, because they are actually the ones investing.
Grayscale only acts as a custodian of the funds and as a manager of the derivative financial product that allows end-investors exposure to changes in the price of bitcoin without having to buy the tokens directly.
This does not detract from the fact that Grayscale’s clients are showing a rather bullish attitude with their purchases in recent days.