Grayscale is the company that handles the most BTC in the entire market. The firm also increased its ethers pool, capitalizing $ 1.1 billion in ETH.
Grayscale, one of the largest digital asset management companies in the United States, this week celebrated the arrival of half a million bitcoins in its investment fund.
With more than seven years of operations in the United States, Grayscale holds the title of the company with the largest number of bitcoin under its custody. And now that the firm owns about 500,000 BTC in its Grayscale Bitcoin Trust fund, it would be handling almost 3% of the bitcoins issued and just over 2% of the total supply of the network.
Bitcoin is programmed to issue a finite number of bitcoins, the round number of 21,000,000 coins. Grayscale has built a good chunk of the Bitcoin pie over the years, although 2020 turned out to be a prolific year for the company. In the last six months, the amount of bitcoins under its custody increased by 50%, according to records from the firm.
Grayscale reported last week of November as the one with the highest influx of bitcoins in the fund. The firm moved about 15,907 bitcoins by the end of November 15, according to studies by the company. The ethers fund that the company owns, Ethereum Trust Grayscale, also registered an increase in holdings for 2020 that reached 1.1 billion dollars in ethers.
Bitcoin catches the attention of companies and institutional investors
This behavior reveals that institutional investors are increasingly interested in bitcoin and cryptocurrencies in general since Grayscale Bitcoin Trust and its other funds are products designed for the traditional financial market. When the Bitcoin fund debuted in 2013, The main plan was to set it as a private cryptocurrency investment project where only a few accredited investors could participate.
Over the years, the fund opened up to public listing, consolidating its operation in 2020 with its registration with the United States Securities and Exchange Commission (SEC) for its regulated operation. While all this was happening, the interest in bitcoin among institutional investors just exploded, becoming adopted by figures of great importance in the financial world such as Stanley Druckenmiller and Bill Miller.
While Grayscale continues to be the largest Bitcoin whale among publicly traded companies in the United States, other firms have also decided to participate in the cryptocurrency market. firms like CoinShares, Microstrategy, and Square also trust in the future of Bitcoin.
Despite the vast difference in the funds they handle, all of these institutional bitcoin purchases helped push the price of the cryptocurrency in the current bull rally. A green market that continues to inflate thanks to initiatives such as Paypal, which already allows the purchase and sale of bitcoins on its platforms for all residents of the United States.
By: Jenson Nuñez.
