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Grayscale fast approaching half a million Bitcoin in their coffers

Photo of: Joseph Stone
by Joseph Stone

The Bitcoin Trust of asset manager Grayscale is attracting a growing number of institutional investors. It currently manages more than 481,700 Bitcoins. By the end of 2020, Grayscale is expected to hold 500,000 Bitcoins, representing nearly 3% of the cryptocurrency in circulation.

Grayscale’s Bitcoin Trust continues to attract new investments. The size of the assets under management has thus shown sustained growth in recent months. During the previous week, its portfolio recorded 15,907 additional Bitcoins.

This represents an increase of 215 million dollars. In total, the fund, therefore, has more than 6.7 billion dollars in Bitcoin or 481,711 BTC under management. This compares to $4.9 billion at the end of September. This great increase of almost $2 billion can be explained both by the new Bitcoin purchased but also by the price of individual Bitcoins which has steadily increased through October.

During the month of October at least, Grayscale bought approximately 32,000 additional BTCs for its clients. If this trend continues at a similar pace, the asset manager will reach 500,000 Bitcoin by the end of 2020.

Substantial capital? Indeed, since it would be equivalent to about 2.7% of the Bitcoin in circulation. Just over 18 million Bitcoins have been mined to date. Remember that this figure has a limit of 21 million. However, this deadline will not be reached before 2140 as the difficulty of mining grows with each singular block mined.

In any case, the indicators of the Bitcoin Trust reflect the strong investor interest in Bitcoin in 2020. Its creation dates back to 2013. However, it is this year that it is experiencing such explosive growth.

At the beginning of the year, assets under management amounted to $1.9 billion. In just nine months, assets under management had already reached $4.7 billion. And on average, an additional $39.5 million was being added to Bitcoin Trust every week. But since the third quarter, that value has jumped to $55 million. Clearly, the general public has developed a growing appetite and trust for Bitcoin as a long term store of money.