On Monday 16 November 2020, crypto fund manager, Grayscale announced that they had increased their Bitcoin holdings to a massive 500,000 BTC. Grayscale have increased their Bitcoin holdings by nearly 50% in the last 6 months, suggesting the presence of an enormous institutional interest.
Grayscale Bitcoin Trust now holds more than 500,000 $BTC. Yes, you read that right. Learn more about the world's largest #Bitcoin investment product. #GoGrayscale https://t.co/2sEpUdw8iN pic.twitter.com/9h8nGZ8i4t
— Grayscale (@Grayscale) November 16, 2020
This would essentially mean that Grayscale currently owns 2.69% of the entire Bitcoin supply. This figure does not, however, take into account the Bitcoin that has been lost. According to a report by Chainalysis, it is estimated that around 3.7 million BTC have been lost. This would, therefore, mean that Grayscale may actually be in the possession of roughly 3.37% of the remaining Bitcoin supply.
According to the firm’s latest balance sheet, Grayscale now has a total of $10.4 Billion worth of Assets Under Management (AUM):
11/17/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) November 17, 2020
It is believed that Grayscale’s Bitcoin purchasing spree over the past 6 months is directly linked to the COVID-19 pandemic, which may also be a primary driver of the current Bitcoin rally. According to Grayscale’s recent Bitcoin Investor Study, 38% of all current Bitcoin investors interviewed joined in the last four months, and of these, 63% said that the economic disturbances caused by COVID-19 pandemic was an influencing factor in their decision to purchase BTC.
The study further noted: This year, 62% of investors reported that they are “familiar” with Bitcoin, compared to only 53% in 2019. This indicates that Bitcoin is slowly moving towards mainstream acceptance.