Grayscale’s bitcoin fund is on track to reach 500,000 BTC by the end of the year.
Week breaks record
Last week Grayscale saw a record inflow of 15,907 bitcoins, approximately USD 215 million. Never before have so many bitcoins been deposited in a week. The company now owns $6.7 billion worth of bitcoins, or 481,711 BTC.
Half a million by the end of 2020
Should the company continue last month’s 32,000 bitcoin growth, Grayscale is on track to maintain 500,000 BTC (2.7% of the circulation offer) within three weeks. By the end of next year, if the tariff is consistent, Grayscale would be able to manage 926,600 BTC, which equals 5% of the total current bitcoin offering.
See the left image in the tweet below for the figures in a graph.
Good year for bitcoin and for Grayscale
The fund was set up in September 2013, and is experiencing explosive growth this year. Assets under management grew from $1.9 billion to $4.7 billion in the first nine months of 2020.
Almost 70% of Grayscale’s total weekly inflow has been invested in the Bitcoin Freedom fund over the past three quarters. Weekly inflows grew from a 12-month average of $39.5 million to over $55 million in the third quarter, 84% of which is attributable to institutional investors.
Last week Grayscale published its second Bitcoin Investor Study, in which it found that US investors interested in investing in BTC have grown from 36% in 2019 to 55% in 2020.
More and more companies have bitcoin
Grayscale has more bitcoins than other listed companies (although a fund is not directly comparable to a company that keeps bitcoins in reserve). On 13 October, the remaining 12 companies together held about 150,000 bitcoins. Of these, Microstrategy has 38,250 bitcoins, Galaxy Digital of Mike Novogratz has 16,551 bitcoins and Square of Jack Dorsey manages 4,709 BTC.
The tweet below is from a fortnight ago, but gives a clear picture of the proportions.