Grayscale Purchases $690 Million Worth of Bitcoin, according to Reddit User

According to a reddit user, Grayscale Purchases $690 Million Worth of Bitcoin, totaling the asset purchases of worth 78,354 BTC,.

By Komal Joshi · Aug 31, 2020 . 5min read

The data from Grayscale, the investment firm shows that the former bought at least $690 million worth of BTC since April. A pseudonymous Reddit user put together historical purchases of Grayscale. It shows asset purchases of worth 78,354 BTC. The data gathered by the Reddit user designates Grayscale’s BTC purchases stimulated primarily since April. The former’s absorption of Bitcoin is essential in estimating the overall sentiment of the institutional market. 

Institutions, particularly investors in the U.S., mostly depend on the Grayscale Bitcoin Trust to gain BTC exposure. It offsets potential security risks arising from self-custody, enabling institutions to fund in the asset class securely. The remarkable increase in Grayscale’s Bitcoin purchases’ pace corresponds with the extensive pullback of BTC in March. Moreover, five months ago, after a billion dollars worth of futures contracts were liquidated, BTC sank to as low as $3,600.

GBTC’s Rate of Acquiring Bitcoin Stimulates

 The Reddit user explains, 

“The rate of acquiring bitcoin in GBTC had accelerated after the start of April 2020, as you can see above in the table. At the rate of about 800 bitcoins per day that GBTC has bought every day for the last 100 days, the GBTC is buying Bitcoins equal to about 85% ( 783/900) of all supply of newly minted Bitcoin. And GBTC is just one of the many ETF’s that people who don’t want to fiddle with private keys etc., can use to acquire Bitcoin, albeit the largest one.“

Earlier, Grayscale Investments filed a quarterly report with the SEC. It detailed that the firm’s Bitcoin Trust (GBTC) has increased significantly in value. The filing notes that the trust developed in value by over $1.1 billion as of June 30, 2020. The value increased from over 125,000 BTC to 387,000 BTC. According to the valuations on June 30, exchange rates show that the company’s assets under management (AUM) are about $3.5 billion.”The Trust determined the fair value per Bitcoin to be $9,134.09 and $7,145.00 on June 30, 2020,” explains the SEC filing.

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