Last week Grayscale reported that its product known as Bitcoin Trust recorded the largest inflow of money, receiving $ 215 million. The crypto community sees possible that the company will soon control 5% of the Bitcoin supply.
Grayscale seizes Bitcoin
On Monday a user on Twitter published a very interesting graph where we can see the inflow of each week in the Bitcoin Investment Trust (GBTC).
During the week of October 27, the crypto company perceived an inflow of USD 214 million, or 15,907 Bitcoin; which indicates a constant increase in the number of shares issued.
This brought the GBTC’s amount of money under management (AUM) to $ 6.55 billion.
As we see in the Tweet above, Grayscale currently has $ 7.7 billion in AUM among all the crypto products it offers. And, as we mentioned earlier, the Bitcoin Trust leads with $ 6.55 million.
The issue that is being discussed is what this situation implies if we project it into the long term.
If Grayscale manages to maintain last month’s growth rate of 32,000 BTC, the firm could hold 500,000 BTC (2.7% of circulating supply) within three weeks.
And, if we look even further into the long term, by the end of next year, if the rate is constant, Grayscale could control 926,600 BTC, which is equivalent to 5% of the circulating supply of Bitcoin.
The interest the company has sparked, both in the crypto community and traditional investors, is evident. Mainly 2020 has been a year where Grayscale has experienced explosive growth.
In fact, the company recently released its Q3 report, and since then the Bitcoin Trust’s AUM has risen by an additional $ 2 billion.
And the point is that, for the moment at least, there is reason to believe that Grayscale’s growth rate will continue or even increase in the coming months.
Bitcoin has been the main ally in this process as the interest it arouses in institutional investors has increased.
In this regard, last week Grayscale published a study where it found that American investors who were interested in investing in BTC had increased from 36% in 2019 to 55% in 2020.
In this way, the role that Grayscale plays in the crypto market, especially Bitcoin, is very relevant. It is currently the publicly traded company with the largest amount of Bitcoin.
And, if the growth rate is sustained or increased, Grayscale would be increasing its grip on Bitcoin in a way that some might be concerned about.
What do you think will be the impact of Grayscale having about 5% of the circulating supply of Bitcoin?