Bitcoin accumulation levels at Grayscale have increased to 150%. Since the third Bitcoin halving event occurred, Grayscale has bought 18,910 BTC.
Digital asset management company Grayscale Investments has recently increased its Bitcoin buying speed. According to a researcher, the accumulation levels of the company have increased to around 150% of recently mined bitcoins since the third Bitcoin halving.
Grayscale has reportedly increased its Bitcoin holdings by 60,000 units in the past 100 days. This is equivalent to about 33% of all the coins mined in that period.
Independent researcher Kevin Rooke recently said that the cryptocurrency fund management company has bought 18,910 BTC since the third halving event occurred. However, the amount of Bitcoin mined since the event, which took place on May 11th, was only 12,337.
In other words, Grayscale has been buying BTC at a rate of 1.5 times the recently mined Bitcoin.
The increased accumulation rate suggests an increase in the interest of institutional investors since most of the companies’ customers fall into that category.
Interestingly, Grayscale customers are paying around 21% premium on their Bitcoin stock. Last May 27th, a GBTC share has a purchase price of USD 10.51, while the possession of those shares has a value of USD 8.69. This means that institutional investors prefer to pay more for the said crypto asset to avoid transferring, storing, and managing the main cryptocurrency by themselves.
Another recent report indicates that institutional investors are also interested in buying a large portion of Ethereum (ETH) through Grayscale, even though they have to pay a significant 420% premium on the shares. This has prompted the cryptocurrency management company to accumulate almost half of all ETH mined in 2020.
Best Quarter of Grayscale
The company’s 2020 first quarter document, published at the beginning of this year, exemplifies its growth. It reported that Grayscale had recorded an inflow of around USD 500 million during those three months. That amount was double compared to the previous quarterly high of USD 250 million in the third quarter of 2019.
The most striking thing about the results of the first quarter of 2020 is that these occurred during a time of turbulence and uncertainty for all financial markets, fueled by the COVID-19 pandemic.
As expected, Bitcoin was the most popular crypto asset of those that Grayscale offered, since it was responsible for almost 80% of the revenue. However, Ethereum, Zcash, Bitcoin Cash, Ripple, and Ethereum Classic also exhibited high accumulation rates.
Finally, the entry to all Grayscale products in the past 12 months exceeded the coveted USD 1 billion marks. The total amount of investment accumulated since the company’s inception grew to USD 1.68 billion.
The growing interest among Grayscale customers in Bitcoin indicates that they consider it the best investment option. Since it was born more than 11 years ago, the main cryptocurrency has proved to be able to overcome its all-time lows.
By Willmen Blanco